PLYMOUTH, Minn.--(BUSINESS WIRE)--
The Mosaic Company (NYSE: MOS) reported first quarter 2019 results.
Highlights:
-
Mosaic reported first quarter 2019 net earnings of $131 million
compared to $42 million last year, and diluted earnings per share
(EPS) of $0.34 compared to $0.11 last year, both on revenues of $1.9
billion.
-
For the period, adjusted EBITDA(1) was $430 million
compared to $399 million in the prior year period, and EPS(1)
was $0.25 compared to $0.20 in the prior year period.
-
Notable items in the quarter primarily related to foreign currency
transaction gain, unrealized gain on derivatives, and gain due to
fair value adjustment of the earnout liability related to the
acquisition of Vale Fertilizantes.
-
In the quarter, higher costs impacted all of Mosaic’s businesses,
including costs associated with impacts of weather in North
America and regulatory changes in Brazil. Combined, costs related
to maintenance and down time negatively impacted gross margin by
$77 million, including $9 million the company designated a notable
item, compared to $37 million in the prior year period. These
costs negatively impacted first quarter 2019 EPS by $0.15 per
share and adjusted EPS by $0.13 per share.
-
The Company revised its full-year adjusted EBITDA(1)
guidance to $2.0 to $2.3 billion, and adjusted EPS(1)
guidance to $1.50 to $2.00, primarily reflecting the impact of
curtailments and higher costs associated with the impact of new
tailings dam regulations in Brazil, the increase in Canadian resource
taxes, and delayed recovery in phosphate margins. EPS guidance was
also impacted by an increase in the estimated full year effective tax
rate.
“Mosaic overcame weather and regulatory changes to deliver solid
results. We expect our resilient and strong business to generate good
results this year and across the business cycle,” said Joc O’Rourke,
President and Chief Executive Officer.
Cash flow used by operating activities in the first quarter of 2019 was
$176 million compared to $71 million used in the prior year period. The
first quarter typically reflects a seasonal inventory build that
increases working capital. The Company continues to expect strong cash
flow generation for the full year. Capital expenditures totaled $314
million in the quarter. Mosaic’s total cash and cash equivalents,
excluding restricted cash, were $385 million compared with $848 million
a quarter ago, largely due to the exacerbated seasonal increase in
inventories. Long-term debt was $4.6 billion as of March 31, 2019.
Brazil Tailings Dams Update
Three Mosaic Fertilizantes mines are currently curtailed as the Company
executes its plan to meet new regulatory requirements for tailings dams.
The Company continues to work with independent engineers and regulators
to complete required remediation efforts, obtain dam safety certificates
and return to full operations. The Catalão mine is expected to be at
full operating rates by the end of the second quarter, while the Tapira
and Araxá mines are expected to be at full operating rates by the end of
the third quarter.
While mining is suspended, the Company expects to continue to process
available rock inventory to maintain finished product sales. Mosaic
Fertilizantes will supplement requirements with imported rock from the
Company’s mine in Peru and finished phosphates from Mosaic’s Florida
operations to meet Brazilian customer needs.
Mosaic expects to ship up to 600,000 tonnes of rock from its Peruvian
mine replacing approximately 40 percent of the Brazilian mines’ normal
output. In addition, depending upon the timing of the mines’ return to
full operation, the Company plans to ship up to 300,000 incremental
tonnes of finished phosphates from its Florida production facilities to
Brazilian customers. The higher delivered cost of Miski Mayo rock,
combined with the costs of underutilization of mines and chemical
plants, is expected to increase expenses by approximately $50 million in
the second quarter, and up to $100 million in the full year 2019.
| Phosphates Results* |
| 1Q 2019 |
| 4Q 2018 |
| 1Q 2018 |
|
Sales Volumes million tonnes
| |
1.8
| |
1.9
| |
1.9
|
|
Gross Margin (GAAP) per tonne
| | $31 | | $81 | | $49 |
|
Adjusted Gross Margin (non-GAAP) per tonne(1) | | $36 | | $81 | | $57 |
| | | | | |
|
*Tonnes = finished product tonnes
Net sales in the Phosphates segment were $806 million for the first
quarter, down from $866 million last year, primarily driven by lower
sales volumes. Average selling prices were essentially flat and raw
material costs were higher, negatively impacting gross margin per tonne.
Gross margin was $55 million for the first quarter compared to $97
million for the same period a year ago.
The cash cost of mined rock in Florida continues to remain elevated, at
$43 per tonne, as the Company transitions to new mining areas.
The cash cost of conversion declined slightly year-over-year, and
included the impact of the 300,000 tonne curtailment previously
announced.
| Potash Results |
| 1Q 2019 |
| 4Q 2018 |
| 1Q 2018 |
|
Sales Volumes million tonnes
| |
1.9
| |
2.3
| |
1.7
|
|
Gross Margin (GAAP) per tonne
| | $100 | | $88 | | $61 |
|
Adjusted Gross Margin (non-GAAP) per tonne(1) | | $100 | | $88 | | $64 |
| | | | | |
|
Net sales in the Potash segment totaled $504 million for the first
quarter, up from $404 million last year, driven by both higher average
sales prices and higher sales volumes. Gross margin was $186 million for
the first quarter compared to $103 million for the same period a year
ago.
The improvement in gross margin was primarily driven by higher average
sales prices. MOP cash costs, including brine management costs, were $84
per tonne. MOP cash costs of production were essentially flat to last
year’s levels, despite lower operating rates in the current quarter.
Cash brine management costs declined to $28 million from $31 million in
the year ago period.
| Mosaic Fertilizantes Results* |
| 1Q 2019 |
| 4Q 2018 |
| 1Q 2018 |
|
Sales Volumes million tonnes
| |
1.5
| |
2.1
| |
1.6
|
|
Gross Margin (GAAP) per tonne
| | $34 | | $56 | | $37 |
|
Adjusted Gross Margin (non GAAP) per tonne(1) | | $34 | | $56 | | $37 |
| | | | | |
|
*Tonnes = finished product tonnes
Net sales in the Mosaic Fertilizantes segment were $698 million for the
first quarter, up from $665 million last year. Gross margin was $52
million, compared to $59 million for the same period a year ago. The
year-over-year decrease in gross margin was primarily driven by
turnaround costs and costs associated with idling of the Araxá mining
complex as a result of the new mining regulations in Brazil. In
addition, the prior year period benefited from an inventory fair value
adjustment related to the acquisition of Vale Fertilizantes. Higher
prices and distribution margins were partially offset by the impact of
higher raw material costs and lower production volumes.
Despite the near-term tailings dam related challenges, Mosaic
Fertilizantes delivered $69 million in gross realized synergies in the
quarter, or $66 million net of costs to achieve them. This represents a
run rate in excess of previously stated targets. For the full year 2019,
Mosaic continues to believe it will achieve $275 million in targeted net
synergies.
Other
Selling, General and Administrative (SG&A) expenses were $94 million for
the first quarter, flat with the first quarter of 2018.
The tax rate during the first quarter of 2019 was 26 percent and was
above guidance due to changes in the forecasted mix of earnings from
various tax jurisdictions. The full year 2019 effective tax rate is
expected to remain in the mid to high 20 percent range. Net cash income
tax payments in 2019 are expected to be approximately $75 million.
Financial Guidance
While the Company’s expectations for Potash remain strong, margin
pressure on the Phosphates business has lasted longer than originally
anticipated, and Mosaic Fertilizantes will have increased costs related
to the changing tailings dam regulations. Combined, these factors have
resulted in the Company revising adjusted EBITDA guidance. In addition,
adjusted EPS guidance is impacted by an increase in the assumed
effective tax rate.
Mosaic has updated earnings guidance ranges:
|
|
|
|
|
|
| $ in billions except per share |
| 2019 Guidance |
| Reported YTD 3/31/2019 |
|
Adjusted EBITDA(1) |
| $2.0 - $2.3 |
| $0.430 |
|
Adjusted earnings per share(1) |
| $1.50 - $2.00 |
| $0.25 |
|
Capital Expenditures
|
| ~$1.2 |
| $0.314 |
The following assumptions embedded in the full-year guidance remain
unchanged:
|
|
|
|
|
|
| In Millions* |
| Full-Year 2019 Assumptions |
| Reported YTD 3/31/2019 |
|
Potash tonnes sold
|
|
9.0 – 9.4
|
|
1.9
|
|
Phosphates tonnes sold
|
|
8.6 – 9.0
|
|
1.8
|
|
Mosaic Fertilizantes tonnes sold
|
|
9.4 – 9.8
|
|
1.5
|
|
|
|
|
|
|
|
SG&A Expenses
|
|
~ $350 |
| $94 |
*Tonnes = finished product tonnes
For the second quarter of 2019, Mosaic expects:
|
|
|
|
|
|
|
| Sales Volumes |
| Adjusted Gross Margin(1) |
|
|
| millions of tonnes* |
|
|
|
Potash
|
|
2.3 – 2.6
|
| $70 – $80 per tonne
|
|
Phosphates
|
|
2.3 – 2.6
|
| $40 – $50 per tonne
|
|
Mosaic Fertilizantes
|
|
2.0 – 2.3
|
| $15 – $25 per tonne
|
|
Corporate and Other
|
|
|
| $(5) – $(15) million |
*Tonnes = finished product tonnes
(1) See “Non-GAAP Financial Measures” for additional
information and reconciliation.
Despite a slow start, the Company’s forecasts assume a normal North
American spring application season. In phosphates and potash, lower
operating rates related to first quarter curtailments will impact costs
of goods sold as those costs run through inventory. In addition, the
late start to the North American spring has impacted potash operating
rates into the second quarter.
In the Mosaic Fertilizantes segment, the Company expects up to $100
million in costs associated with managing through the tailings dam
regulatory changes, approximately $50 million of which will flow through
cost of goods sold and gross margin during the second quarter of 2019.
Risks and factors that could impact second quarter expectations are
primarily related to weather, and its impact on both North American
applications and South East Asian demand, as well as foreign currency
fluctuations.
For the year, risks also include the timing of completing the work
required to recertify the safety of the idled tailings dams, and restart
mining operations in Brazil.
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.
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, May 7, 2019, at 9:00
a.m. Eastern Time to discuss first quarter 2019 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. conducted through Vale Fertilizantes S.A.
(now known as Mosaic Fertilizantes P&K Ltda) (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 higher costs associated with the new mining
rules and remediation efforts, or the implementation of 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 Ma’aden 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 June 30, 2017 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 being furnished under
Exhibit 99.2 of the Form 8-K and available on our website at www.mosaicco.com
in the “Financial Information – Quarterly Earnings” section under the
“Investors” tab.
For the three months ended March 31, 2019, the Company reported the
following notable items which, combined, positively 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 (loss)
| |
Consolidated
| |
Foreign currency transaction gain (loss)
| |
$
|
23
| | |
$
|
(6
|
)
| |
$
|
0.05
| |
|
Unrealized gain (loss) on derivatives
| |
Corporate and Other
| |
Cost of goods sold
| |
25
| | |
(7
|
)
| |
0.05
| |
| Louisiana gypstack costs
| |
Phosphates
| |
Cost of goods sold
| |
(9
|
)
| |
2
| | |
(0.02
|
)
|
|
Integration costs
| |
Corporate and Other
| |
Other operating income (expense)
| |
(5
|
)
| |
1
| | |
(0.01
|
)
|
|
Costs to capture synergies
| |
Mosaic Fertilizantes
| |
Other operating income (expense)
| |
(3
|
)
| |
1
| | |
(0.01
|
)
|
|
Earn-out obligation
| |
Corporate and Other
| |
Other operating income (expense)
| |
11
|
| |
—
|
| |
0.03
|
|
|
Total Notable Items
| | | | | |
$
|
42
|
| |
$
|
(9
|
)
| |
$
|
0.09
|
|
| | | | | | | | | | | | | | | |
|
For the three months ended March 31, 2018, 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 (loss)
| |
Consolidated
| |
Foreign currency transaction gain (loss)
| |
$
|
(32
|
)
| |
$
|
9
| | |
$
|
(0.06
|
)
|
|
Unrealized gain (loss) on derivatives
| |
Corporate and Other
| |
Cost of goods sold
| |
(12
|
)
| |
3
| | |
(0.02
|
)
|
|
Fees related to purchase of Vale Fertilizantes
| |
Corporate and Other
| |
Other operating income (expense)
| |
(18
|
)
| |
5
| | |
(0.03
|
)
|
|
Integration costs
| |
Corporate and Other
| |
Other operating income (expense)
| |
(8
|
)
| |
2
| | |
(0.02
|
)
|
|
Costs to capture synergies
| |
Mosaic Fertilizantes
| |
Other operating income (expense)
| |
(16
|
)
| |
5
| | |
(0.03
|
)
|
|
Refinement of inventory costing
| |
Potash
| |
Cost of goods sold
| |
(5
|
)
| |
2
| | |
(0.01
|
)
|
|
Refinement of inventory costing
| |
Phosphates
| |
Cost of goods sold
| |
(15
|
)
| |
4
| | |
(0.03
|
)
|
|
Realized loss on RCRA Trust securities
| |
Phosphates
| |
Other non-operating income (expense)
| |
(5
|
)
| |
1
| | |
(0.01
|
)
|
|
Severance
| |
Corporate and Other
| |
Other operating income (expense)
| |
(4
|
)
| |
1
| | |
(0.01
|
)
|
|
Discrete tax items
| |
Consolidated
| |
(Provision for) benefit from income taxes
| |
—
|
| |
48
|
| |
0.13
|
|
|
Total Notable Items
| | | | | |
$
|
(115
|
)
| |
$
|
80
|
| |
$
|
(0.09
|
)
|
| | | | | | | | | | | | | | | |
|
Condensed Consolidated Statements of Earnings |
(in millions, except per share amounts) |
|
| |
| |
|
| The Mosaic Company |
| (unaudited) |
|
| |
| | Three months ended
March 31, |
| | 2019 | | 2018 |
|
Net sales
| |
$
|
1,899.7
| | |
$
|
1,933.7
| |
|
Cost of goods sold
| |
1,590.2
|
| |
1,691.6
|
|
|
Gross margin
| |
309.5
| | |
242.1
| |
|
Selling, general and administrative expenses
| |
93.5
| | |
93.6
| |
|
Other operating expense
| |
13.9
|
| |
67.8
|
|
|
Operating earnings
| |
202.1
| | |
80.7
| |
|
Interest expense, net
| |
(47.0
|
)
| |
(49.4
|
)
|
|
Foreign currency transaction gain (loss)
| |
22.6
| | |
(32.2
|
)
|
|
Other expense
| |
(1.1
|
)
| |
(5.6
|
)
|
|
Earnings (loss) from consolidated companies before income taxes
| |
176.6
| | |
(6.5
|
)
|
|
Provision for (benefit from) income taxes
| |
46.6
|
| |
(49.9
|
)
|
|
Earnings from consolidated companies
| |
130.0
| | |
43.4
| |
|
Equity in net loss of nonconsolidated companies
| |
(0.1
|
)
| |
(3.3
|
)
|
|
Net earnings including noncontrolling interests
| |
129.9
| | |
40.1
| |
|
Less: Net loss attributable to noncontrolling interests
| |
(0.9
|
)
| |
(2.2
|
)
|
|
Net earnings attributable to Mosaic
| |
$
|
130.8
|
| |
$
|
42.3
|
|
|
Diluted net earnings per share attributable to Mosaic
| |
$
|
0.34
|
| |
$
|
0.11
|
|
|
Diluted weighted average number of shares outstanding
| |
387.4
| | |
384.1
| |
| | | | | |
|
Condensed Consolidated Balance Sheets |
(in millions, except per share amounts) |
|
| |
| The Mosaic Company |
| (unaudited) |
|
| March 31,
2019 |
| December 31,
2018 |
| Assets | | | | |
|
Current assets:
| | | | |
|
Cash and cash equivalents
| |
$
|
384.6
| | |
$
|
847.7
| |
|
Receivables, net
| |
792.0
| | |
838.5
| |
|
Inventories
| |
2,572.1
| | |
2,270.2
| |
|
Other current assets
| |
397.6
|
| |
280.6
|
|
|
Total current assets
| |
4,146.3
| | |
4,237.0
| |
|
Property, plant and equipment, net
| |
11,942.7
| | |
11,746.5
| |
|
Investments in nonconsolidated companies
| |
823.3
| | |
826.6
| |
| Goodwill | |
1,726.8
| | |
1,707.5
| |
|
Deferred income taxes
| |
345.9
| | |
343.8
| |
|
Other assets
| |
1,460.3
|
| |
1,257.8
|
|
|
Total assets
| |
$
|
20,445.3
|
| |
$
|
20,119.2
|
|
| Liabilities and Equity | | | | |
|
Current liabilities:
| | | | |
|
Short-term debt
| |
$
|
167.5
| | |
$
|
11.5
| |
|
Current maturities of long-term debt
| |
40.8
| | |
26.0
| |
|
Structured accounts payable arrangements
| |
466.9
| | |
572.8
| |
|
Accounts payable
| |
781.6
| | |
780.9
| |
|
Accrued liabilities
| |
940.4
|
| |
1,092.5
|
|
|
Total current liabilities
| |
2,397.2
| | |
2,483.7
| |
|
Long-term debt, less current maturities
| |
4,533.0
| | |
4,491.5
| |
|
Deferred income taxes
| |
1,122.4
| | |
1,080.6
| |
|
Other noncurrent liabilities
| |
1,585.2
| | |
1,458.7
| |
|
Equity:
| | | | |
|
Preferred Stock, $0.01 par value, 15,000,000 shares authorized, none
issued and outstanding as of March 31, 2019 and December 31, 2018 | |
—
| | |
—
| |
|
Common Stock, $0.01 par value, 1,000,000,000 shares authorized,
389,560,531 shares issued and 385,788,256 shares outstanding as of
March 31, 2019, 389,242,360 shares issued and 385,470,085 shares
outstanding as of December 31, 2018 | |
3.8
| | |
3.8
| |
|
Capital in excess of par value
| |
996.2
| | |
985.9
| |
|
Retained earnings
| |
11,196.8
| | |
11,064.7
| |
|
Accumulated other comprehensive loss
| |
(1,595.6
|
)
| |
(1,657.1
|
)
|
|
Total Mosaic stockholders' equity
| |
10,601.2
| | |
10,397.3
| |
|
Noncontrolling interests
| |
206.3
|
| |
207.4
|
|
|
Total equity
| |
10,807.5
|
| |
10,604.7
|
|
|
Total liabilities and equity
| |
$
|
20,445.3
|
| |
$
|
20,119.2
|
|
| | | | | | | |
|
Condensed Consolidated Statements of Cash Flows |
(in millions, except per share amounts) |
|
| |
| |
| The Mosaic Company |
| (unaudited) |
| |
|
| | Three months |
| | ended March 31, |
| | 2019 | | 2018 |
| Cash Flows from Operating Activities: | | | |
|
Net cash used in operating activities
| |
$
|
(175.5
|
)
| |
$
|
(71.0
|
)
|
| Cash Flows from Investing Activities: | | | | |
|
Capital expenditures
| |
(313.9
|
)
| | |
(223.3
|
)
|
|
Purchases of available-for-sale securities - restricted
| |
(186.9
|
)
| | |
(185.7
|
)
|
|
Proceeds from sale of available-for-sale securities - restricted
| |
182.3
| | | |
184.0
| |
|
Investments in consolidated affiliate
| |
—
| | | |
1.3
| |
|
Acquisition, net of cash acquired
| |
—
| | | |
(994.6
|
)
|
|
Held-to-Maturity securities - purchases
| |
(13.0
|
)
| | |
—
| |
|
Held-to-Maturity securities - proceeds
| |
2.3
| | | |
—
| |
|
Other
| |
0.3
|
| |
|
(2.1
|
)
|
|
Net cash used in investing activities
| |
(328.9
|
)
| | |
(1,220.4
|
)
|
| Cash Flows from Financing Activities: | | | | |
|
Payments of short-term debt
| |
(53.7
|
)
| | |
—
| |
|
Proceeds from issuance of short-term debt
| |
206.0
| | | |
65.3
| |
|
Payments of structured accounts payable arrangements
| |
(319.7
|
)
| | |
(235.7
|
)
|
|
Proceeds from structured accounts payable arrangements
| |
209.5
| | | |
173.8
| |
|
Payments of long-term debt
| |
(10.1
|
)
| | |
(206.9
|
)
|
|
Cash dividends paid
| |
(9.6
|
)
| | |
(9.6
|
)
|
|
Other
| |
(0.1
|
)
| |
|
(0.2
|
)
|
|
Net cash provided by (used in) financing activities
| |
22.3
| | | |
(213.3
|
)
|
|
Effect of exchange rate changes on cash
| |
13.5
|
| |
|
13.4
|
|
|
Net change in cash, cash equivalents and restricted cash
| |
(468.6
|
)
| | |
(1,491.3
|
)
|
|
Cash, cash equivalents and restricted cash - beginning of period
| |
871.0
|
| |
|
2,194.4
|
|
|
Cash, cash equivalents and restricted cash - end of period
| |
$
|
402.4
|
| |
$
|
703.1
|
|
| | | |
|
| Reconciliation of cash, cash equivalents and restricted cash
reported within the unaudited condensed consolidated balance sheets
to the unaudited condensed consolidated statements of cash flows: | | | | |
|
Cash and cash equivalents
| |
$
|
384.6
| | |
$
|
659.4
| |
|
Restricted cash in other current assets
| |
8.8
| | | |
9.4
| |
|
Restricted cash in other assets
| |
9.0
|
| |
|
34.3
|
|
|
Total cash, cash equivalents and restricted cash shown in the
unaudited condensed consolidated statement of cash flows
| |
$
|
402.4
|
| |
$
|
703.1
|
|
| | | | | | | |
|
Earnings Per Share Calculation |
|
| |
| | Three months ended |
| | March 31, |
| | 2019 |
| 2018 |
|
Net earnings attributable to Mosaic
| |
$
|
130.8
| | |
$
|
42.3
|
|
Basic weighted average number of shares outstanding
| |
385.5
| | |
382.6
|
|
Dilutive impact of share-based awards
| |
1.9
|
| |
1.5
|
|
Diluted weighted average number of shares outstanding
| |
387.4
|
| |
384.1
|
|
Basic net earnings per share attributable to Mosaic
| |
$
|
0.34
| | |
$
|
0.11
|
|
Diluted net earnings per share attributable to Mosaic
| |
$
|
0.34
| | |
$
|
0.11
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20190506005785/en/
Media
Ben Pratt
The Mosaic Company
763-577-6102
benjamin.pratt@mosaicco.com
Investors
Laura Gagnon
The Mosaic Company
763-577-8213
investor@mosaicco.com
Source: The Mosaic Company