Attached files
| file | filename |
|---|---|
| EX-99.2 - PRESENTATION ENTITLED "SEGMENT REPORTING CHANGES MARCH 2015" - MOSAIC CO | exhibit992segmentchangee.htm |
| EX-99.1 - PRESS RELEASE DATED MARCH 13, 2015 - MOSAIC CO | exhibit991pressreleasesegm.htm |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 13, 2015
THE MOSAIC COMPANY
(Exact name of registrant as specified in its charter)
Delaware | 001-32327 | 20-1026454 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||
3033 Campus Drive Suite E490 Plymouth, Minnesota | 55441 | ||
(Address of principal executive offices) | (Zip Code) | ||
Registrant’s telephone number, including area code: (800) 918-8270
Not applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. Results of Operations and Financial Condition.
The following information is being “furnished” in accordance with General Instruction B.2. of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as expressly set forth by specific reference in such filing:
MOSAIC SEGMENT REALIGNMENT
This report should be read in conjunction with The Mosaic Company’s annual report on Form 10-K for the fiscal year ended December 31, 2014, including the Management’s Discussion and Analysis of Results of Operations and Financial Condition and the consolidated financial statements and accompanying notes.
On March 13, 2015, The Mosaic Company (“Mosaic”, and individually or in any combination with its consolidated subsidiaries, “we”, “us”, “our”, or the “Company”) announced that it was realigning its business segments (the “Realignment”) to more clearly reflect the Company’s evolving business model. Furnished herewith as Exhibit 99.1 and incorporated by reference herein is the text of Mosaic’s announcement regarding the Realignment.
Our business segments are determined by management based upon factors such as products and services, production processes, technologies, market dynamics, and for which segment financial information is readily available for our chief operating decision maker. As part of the Realignment, our international distribution activities, which had previously been reported in our Phosphates business segment, are being moved into a separate International Distribution segment, as this is how our chief operating decision maker began viewing and evaluating our operations during the first quarter. The Corporate and Other segment will now include inter-segment eliminations, mark-to-market gains/losses on derivatives that had previously been reported in our Phosphates and Potash business segments, debt expenses, and our legacy Argentina and Chile results.
The tables below provide certain performance data for our reportable segments for each of the eight quarters through the quarter ended December 31, 2014, adjusted to reflect the Realignment. The recasting of previously issued financial information does not represent a restatement of previously issued financial statements. The information contained in this Form 8-K is being furnished in order to provide the financial community with historical financial data that is presented on a basis consistent with the Company’s new reporting structure. Beginning with the quarter ending March 31, 2015, the Company’s financial statements will reflect the new reporting structure with prior periods adjusted accordingly.
The Mosaic Company
Selected Calendar Quarter Financial Information
(Unaudited)
Q1 2013 | Q2 2013 | Q3 2013 | Q4 2013 | Q1 2014 | Q2 2014 | Q3 2014 | Q4 2014 | |||||||||||||||||||||||||
Consolidated data (in millions, except per share) | ||||||||||||||||||||||||||||||||
Diluted net earnings per share(a) | $ | 0.89 | $ | 1.01 | $ | 0.29 | $ | 0.30 | $ | 0.54 | $ | 0.64 | $ | 0.54 | $ | 0.97 | ||||||||||||||||
Diluted weighted average # of shares outstanding(b) | 427.2 | 427.2 | 427.1 | 415.5 | 379.6 | 376.2 | 375.9 | 372.0 | ||||||||||||||||||||||||
Total Net Sales | $ | 2,312 | $ | 2,619 | $ | 1,909 | $ | 2,182 | $ | 1,986 | $ | 2,440 | $ | 2,251 | $ | 2,379 | ||||||||||||||||
Gross Margin | $ | 642 | $ | 665 | $ | 387 | $ | 322 | $ | 412 | $ | 521 | $ | 415 | $ | 579 | ||||||||||||||||
As % of Sales | 28 | % | 25 | % | 20 | % | 15 | % | 21 | % | 21 | % | 18 | % | 24 | % | ||||||||||||||||
SG&A | 92 | 116 | 94 | 91 | 120 | 88 | 84 | 91 | ||||||||||||||||||||||||
Consolidated Foreign Currency Gain/(Loss) | 17 | 22 | (30 | ) | 25 | 43 | (39 | ) | 27 | 47 | ||||||||||||||||||||||
Effective Tax Rate(c) | 26 | % | 23 | % | (6 | )% | 51 | % | (1 | )% | 25 | % | 27 | % | 7 | % | ||||||||||||||||
Net Income | $ | 380 | $ | 430 | $ | 124 | $ | 129 | $ | 218 | $ | 248 | $ | 202 | $ | 361 | ||||||||||||||||
As % of Sales | 16 | % | 16 | % | 7 | % | 6 | % | 11 | % | 10 | % | 9 | % | 15 | % | ||||||||||||||||
EBITDA(d) | ||||||||||||||||||||||||||||||||
Potash | $ | 392 | $ | 451 | $ | 155 | $ | 173 | $ | 257 | $ | 281 | $ | 158 | $ | 316 | ||||||||||||||||
Phosphate | 271 | 267 | 136 | 143 | 221 | 309 | 275 | 239 | ||||||||||||||||||||||||
International Distribution | (8 | ) | 19 | 38 | 12 | 10 | 18 | 32 | 24 | |||||||||||||||||||||||
Corporate and Other(e) | (7 | ) | (38 | ) | (16 | ) | 23 | (50 | ) | (13 | ) | (2 | ) | (14 | ) | |||||||||||||||||
Consolidated EBITDA(d) | $ | 648 | $ | 699 | $ | 313 | $ | 351 | $ | 438 | $ | 595 | $ | 463 | $ | 565 | ||||||||||||||||
Total Debt | $ | 1,081 | $ | 1,033 | $ | 1,027 | $ | 3,032 | $ | 3,051 | $ | 3,026 | $ | 3,816 | $ | 3,833 | ||||||||||||||||
Cash & cash equivalents | 3,511 | 3,916 | 3,339 | 5,293 | 2,491 | 2,367 | 2,971 | 2,375 | ||||||||||||||||||||||||
Net debt | $ | (2,430 | ) | $ | (2,883 | ) | $ | (2,312 | ) | $ | (2,261 | ) | $ | 560 | $ | 659 | $ | 845 | $ | 1,458 | ||||||||||||
Cash flow from operations | $ | 579 | $ | 982 | $ | (45 | ) | $ | 503 | $ | 627 | $ | 796 | $ | 489 | $ | 382 | |||||||||||||||
Cash flow from investments | (378 | ) | (381 | ) | (466 | ) | (370 | ) | (1,634 | ) | (360 | ) | (158 | ) | (586 | ) | ||||||||||||||||
Cash flow from financing | (85 | ) | (152 | ) | (89 | ) | 1,842 | (1,770 | ) | (575 | ) | 323 | (319 | ) | ||||||||||||||||||
Effect of exchange rate changes on cash | (10 | ) | (45 | ) | 23 | (20 | ) | (25 | ) | 15 | (50 | ) | (73 | ) | ||||||||||||||||||
Net cash flow | $ | 106 | $ | 404 | $ | (577 | ) | $ | 1,955 | $ | (2,802 | ) | $ | (124 | ) | $ | 604 | $ | (596 | ) | ||||||||||||
Cash dividends paid | $ | (106 | ) | $ | (107 | ) | $ | (107 | ) | $ | (107 | ) | $ | (100 | ) | $ | (95 | ) | $ | (94 | ) | $ | (94 | ) | ||||||||
Operating Earnings | ||||||||||||||||||||||||||||||||
Potash | $ | 313 | $ | 362 | $ | 69 | $ | 89 | $ | 170 | $ | 189 | $ | 69 | $ | 229 | ||||||||||||||||
Phosphates | 201 | 191 | 61 | 64 | 146 | 219 | 188 | 135 | ||||||||||||||||||||||||
International Distribution | (10 | ) | 17 | 36 | 10 | 8 | 16 | 30 | 22 | |||||||||||||||||||||||
Corporate and Other(e) | (13 | ) | (44 | ) | (22 | ) | 16 | (57 | ) | (21 | ) | (10 | ) | (21 | ) | |||||||||||||||||
Consolidated Operating Earnings | $ | 491 | $ | 526 | $ | 144 | $ | 179 | $ | 267 | $ | 403 | $ | 277 | $ | 365 | ||||||||||||||||
Segment data (in millions, except per tonne) | ||||||||||||||||||||||||||||||||
Phosphates | ||||||||||||||||||||||||||||||||
Sales volumes ('000 tonnes)(f)(g) | 2,065 | 2,077 | 1,754 | 2,395 | 2,051 | 2,637 | 2,176 | 2,392 | ||||||||||||||||||||||||
Realized average DAP price/tonne(h) | $ | 486 | $ | 476 | $ | 436 | $ | 370 | $ | 413 | $ | 465 | $ | 463 | $ | 447 | ||||||||||||||||
Revenue | $ | 1,143 | $ | 1,182 | $ | 893 | $ | 1,072 | $ | 959 | $ | 1,333 | $ | 1,133 | $ | 1,212 | ||||||||||||||||
Segment Gross Margin | $ | 252 | $ | 257 | $ | 129 | $ | 134 | $ | 200 | $ | 271 | $ | 236 | $ | 231 | ||||||||||||||||
As % of Sales | 22 | % | 22 | % | 14 | % | 13 | % | 21 | % | 20 | % | 21 | % | 19 | % | ||||||||||||||||
Potash | ||||||||||||||||||||||||||||||||
Sales volumes ('000 tonnes)(g) | 2,007 | 2,448 | 1,380 | 1,862 | 2,355 | 2,500 | 1,808 | 2,309 | ||||||||||||||||||||||||
Realized average MOP price/tonne(h) | $ | 376 | $ | 366 | $ | 342 | $ | 303 | $ | 267 | $ | 267 | $ | 291 | $ | 295 | ||||||||||||||||
Revenue | $ | 825 | $ | 974 | $ | 523 | $ | 652 | $ | 733 | $ | 762 | $ | 593 | $ | 763 | ||||||||||||||||
Segment Gross Margin | $ | 404 | $ | 405 | $ | 162 | $ | 135 | $ | 216 | $ | 226 | $ | 154 | $ | 327 | ||||||||||||||||
As % of Sales | 49 | % | 42 | % | 31 | % | 21 | % | 29 | % | 30 | % | 26 | % | 43 | % | ||||||||||||||||
International Distribution | ||||||||||||||||||||||||||||||||
Sales volumes ('000 tonnes) | 792 | 1,102 | 1,282 | 1,133 | 870 | 1,185 | 1,398 | 1,113 | ||||||||||||||||||||||||
Realized average Blend price/tonne(h) | $ | 557 | $ | 557 | $ | 504 | $ | 455 | $ | 449 | $ | 454 | $ | 469 | $ | 427 | ||||||||||||||||
Revenue | $ | 456 | $ | 615 | $ | 665 | $ | 549 | $ | 393 | $ | 542 | $ | 684 | $ | 516 | ||||||||||||||||
Segment Gross Margin | $ | 6 | $ | 36 | $ | 50 | $ | 29 | $ | 22 | $ | 34 | $ | 51 | $ | 41 | ||||||||||||||||
As % of Sales | 1 | % | 6 | % | 8 | % | 5 | % | 6 | % | 6 | % | 7 | % | 8 | % | ||||||||||||||||
The Mosaic Company - Potash Segment
Selected Calendar Quarter Financial Information
(Unaudited)
Q1 2013 | Q2 2013 | Q3 2013 | Q4 2013 | Q1 2014 | Q2 2014 | Q3 2014 | Q4 2014 | |||||||||||||||||||||||||
Net Sales and Gross Margin (in millions, except per tonne) | ||||||||||||||||||||||||||||||||
Segment income statement | ||||||||||||||||||||||||||||||||
North America | $ | 440 | $ | 480 | $ | 279 | $ | 470 | $ | 515 | $ | 447 | $ | 396 | $ | 494 | ||||||||||||||||
International | 385 | 494 | 244 | 182 | 218 | 315 | 197 | 269 | ||||||||||||||||||||||||
Net Sales | $ | 825 | $ | 974 | $ | 523 | $ | 652 | $ | 733 | $ | 762 | $ | 593 | $ | 763 | ||||||||||||||||
Cost of Goods Sold | 421 | 569 | 361 | 517 | 517 | 536 | 439 | 436 | ||||||||||||||||||||||||
Gross Margin | $ | 404 | $ | 405 | $ | 162 | $ | 135 | $ | 216 | $ | 226 | $ | 154 | $ | 327 | ||||||||||||||||
As % of Sales | 49 | % | 42 | % | 31 | % | 21 | % | 29 | % | 30 | % | 26 | % | 43 | % | ||||||||||||||||
Freight included in revenue & cost of goods sold (in millions)(i) | $ | 44 | $ | 51 | $ | 28 | $ | 61 | $ | 73 | $ | 57 | $ | 51 | $ | 69 | ||||||||||||||||
Net sales less freight | $ | 781 | $ | 923 | $ | 495 | $ | 591 | $ | 660 | $ | 705 | $ | 542 | $ | 694 | ||||||||||||||||
Cost of Goods Sold less freight | $ | 377 | $ | 518 | $ | 333 | $ | 456 | $ | 444 | $ | 479 | $ | 388 | $ | 367 | ||||||||||||||||
Resources Taxes | $ | 32 | $ | 67 | $ | 31 | $ | 57 | $ | 30 | $ | 45 | $ | 46 | $ | 48 | ||||||||||||||||
Royalties | 15 | 14 | 11 | 9 | 6 | 7 | 6 | 8 | ||||||||||||||||||||||||
Total Resources Taxes & Royalties | $ | 47 | $ | 81 | $ | 42 | $ | 66 | $ | 36 | $ | 52 | $ | 52 | $ | 56 | ||||||||||||||||
Gross Margin (excluding Resources Taxes & Royalties)(j) | $ | 451 | $ | 486 | $ | 204 | $ | 201 | $ | 252 | $ | 278 | $ | 206 | $ | 383 | ||||||||||||||||
As % of Sales | 55 | % | 50 | % | 39 | % | 31 | % | 34 | % | 36 | % | 35 | % | 50 | % | ||||||||||||||||
Segment Operating Earnings | $ | 313 | $ | 362 | $ | 69 | $ | 89 | $ | 170 | $ | 189 | $ | 69 | $ | 229 | ||||||||||||||||
Depreciation, Depletion and Amortization | 79 | 89 | 86 | 84 | 87 | 92 | 89 | 87 | ||||||||||||||||||||||||
EBITDA(d) | $ | 392 | $ | 451 | $ | 155 | $ | 173 | $ | 257 | $ | 281 | $ | 158 | $ | 316 | ||||||||||||||||
Cost of Goods Sold Detail (in millions) | ||||||||||||||||||||||||||||||||
COGS additional detail | ||||||||||||||||||||||||||||||||
Resource Taxes | $ | 32 | $ | 67 | $ | 31 | $ | 57 | $ | 30 | $ | 45 | $ | 46 | $ | 48 | ||||||||||||||||
Royalties | 15 | 14 | 11 | 9 | 6 | 7 | 6 | 8 | ||||||||||||||||||||||||
Brine Inflow Expenses | 53 | 51 | 48 | 50 | 44 | 46 | 44 | 47 | ||||||||||||||||||||||||
Depreciation, Depletion and Amortization | 79 | 89 | 86 | 84 | 87 | 92 | 89 | 87 | ||||||||||||||||||||||||
Total | $ | 179 | $ | 221 | $ | 176 | $ | 200 | $ | 167 | $ | 190 | $ | 185 | $ | 190 | ||||||||||||||||
Operating Data | ||||||||||||||||||||||||||||||||
Sales volumes ('000 tonnes) | ||||||||||||||||||||||||||||||||
Crop Nutrients North America(g) | 705 | 804 | 417 | 933 | 1,111 | 873 | 691 | 964 | ||||||||||||||||||||||||
Crop Nutrients International(g) | 1,134 | 1,468 | 781 | 744 | 1,065 | 1,427 | 919 | 1,228 | ||||||||||||||||||||||||
Non-Agricultural | 168 | 176 | 182 | 185 | 179 | 200 | 198 | 117 | ||||||||||||||||||||||||
Total(g) | 2,007 | 2,448 | 1,380 | 1,862 | 2,355 | 2,500 | 1,808 | 2,309 | ||||||||||||||||||||||||
Production Volumes ('000 tonnes) | ||||||||||||||||||||||||||||||||
Production Volume | 2,197 | 2,161 | 1,957 | 1,741 | 1,871 | 2,044 | 1,666 | 2,584 | ||||||||||||||||||||||||
Operating Rate(k) | 83 | % | 81 | % | 73 | % | 65 | % | 70 | % | 76 | % | 62 | % | 91 | % | ||||||||||||||||
Realized prices (FOB plant, $/tonne) | ||||||||||||||||||||||||||||||||
MOP - North America crop nutrients(h)(l) | $ | 426 | $ | 415 | $ | 364 | $ | 332 | $ | 300 | $ | 308 | $ | 344 | $ | 355 | ||||||||||||||||
MOP - International(h) | $ | 327 | $ | 326 | $ | 294 | $ | 225 | $ | 209 | $ | 225 | $ | 232 | $ | 239 | ||||||||||||||||
MOP - Average(h) | $ | 376 | $ | 366 | $ | 342 | $ | 303 | $ | 267 | $ | 267 | $ | 291 | $ | 295 | ||||||||||||||||
Brine inflow cost/production tonne | $ | 24 | $ | 24 | $ | 25 | $ | 29 | $ | 24 | $ | 23 | $ | 26 | $ | 18 | ||||||||||||||||
MOP cash cost/sales tonne | $ | 125 | $ | 142 | $ | 149 | $ | 164 | $ | 136 | $ | 134 | $ | 137 | $ | 97 | ||||||||||||||||
EBITDA(d)/sales tonne(m) | $ | 195 | $ | 184 | $ | 112 | $ | 93 | $ | 109 | $ | 112 | $ | 87 | $ | 137 | ||||||||||||||||
Potash CAPEX (in millions) | $ | 235 | $ | 216 | $ | 199 | $ | 197 | $ | 144 | $ | 94 | $ | 92 | $ | 141 | ||||||||||||||||
The Mosaic Company - Phosphates Segment
Selected Calendar Quarter Financial Information
(Unaudited)
Q1 2013 | Q2 2013 | Q3 2013 | Q4 2013 | Q1 2014 | Q2 2014 | Q3 2014 | Q4 2014 | |||||||||||||||||||||||||
Net Sales and Gross Margin (in millions, except per tonne) | ||||||||||||||||||||||||||||||||
Segment income statement | ||||||||||||||||||||||||||||||||
North America | $ | 549 | $ | 589 | $ | 417 | $ | 721 | $ | 559 | $ | 725 | $ | 636 | $ | 714 | ||||||||||||||||
International | 594 | 593 | 476 | 351 | 400 | 608 | 497 | 498 | ||||||||||||||||||||||||
Net Sales | $ | 1,143 | $ | 1,182 | $ | 893 | $ | 1,072 | $ | 959 | $ | 1,333 | $ | 1,133 | $ | 1,212 | ||||||||||||||||
Cost of Goods Sold | 891 | 925 | 764 | 938 | 759 | 1,062 | 897 | 981 | ||||||||||||||||||||||||
Gross Margin | $ | 252 | $ | 257 | $ | 129 | $ | 134 | $ | 200 | $ | 271 | $ | 236 | $ | 231 | ||||||||||||||||
As % of Sales | 22 | % | 22 | % | 14 | % | 13 | % | 21 | % | 20 | % | 21 | % | 19 | % | ||||||||||||||||
Freight included in revenue & cost of goods sold (in millions) | $ | 75 | $ | 90 | $ | 74 | $ | 112 | $ | 81 | $ | 100 | $ | 88 | $ | 103 | ||||||||||||||||
Net sales less freight | $ | 1,068 | $ | 1,092 | $ | 819 | $ | 960 | $ | 878 | $ | 1,233 | $ | 1,045 | $ | 1,109 | ||||||||||||||||
Cost of Goods Sold less freight | $ | 816 | $ | 835 | $ | 690 | $ | 826 | $ | 678 | $ | 962 | $ | 809 | $ | 878 | ||||||||||||||||
PhosChem sales of other member | $ | 14 | $ | 46 | $ | 15 | $ | 23 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Segment Operating Earnings | $ | 201 | $ | 191 | $ | 61 | $ | 64 | $ | 146 | $ | 219 | $ | 188 | $ | 135 | ||||||||||||||||
Depreciation, Depletion and Amortization | 69 | 71 | 72 | 75 | 79 | 93 | 91 | 97 | ||||||||||||||||||||||||
Equity Earnings (Loss) | 1 | 5 | 3 | 4 | (4 | ) | (3 | ) | (4 | ) | 7 | |||||||||||||||||||||
EBITDA(d) | $ | 271 | $ | 267 | $ | 136 | $ | 143 | $ | 221 | $ | 309 | $ | 275 | $ | 239 | ||||||||||||||||
Operating Data | ||||||||||||||||||||||||||||||||
Sales volumes ('000 tonnes) | ||||||||||||||||||||||||||||||||
North America - DAP/MAP | 638 | 682 | 515 | 1,116 | 747 | 948 | 805 | 837 | ||||||||||||||||||||||||
International - DAP/MAP(e)(g) | 866 | 795 | 687 | 577 | 650 | 1,040 | 878 | 882 | ||||||||||||||||||||||||
MicroEssentials®(g) | 430 | 459 | 407 | 541 | 510 | 481 | 357 | 502 | ||||||||||||||||||||||||
Feed and Other | 131 | 141 | 145 | 161 | 144 | 168 | 136 | 171 | ||||||||||||||||||||||||
Total(f) | 2,065 | 2,077 | 1,754 | 2,395 | 2,051 | 2,637 | 2,176 | 2,392 | ||||||||||||||||||||||||
Production Volumes ('000 tonnes) | ||||||||||||||||||||||||||||||||
Total tonnes produced(n) | 2,038 | 2,049 | 2,123 | 1,960 | 1,971 | 2,458 | 2,480 | 2,364 | ||||||||||||||||||||||||
Operating Rate | 84 | % | 84 | % | 88 | % | 81 | % | 79 | % | 84 | % | 85 | % | 81 | % | ||||||||||||||||
Realized prices ($/tonne) | ||||||||||||||||||||||||||||||||
DAP (FOB plant)(f) | $ | 486 | $ | 476 | $ | 436 | $ | 370 | $ | 413 | $ | 465 | $ | 463 | $ | 447 | ||||||||||||||||
Realized costs ($/tonne) | ||||||||||||||||||||||||||||||||
Ammonia (tonne)(o) | $ | 550 | $ | 517 | $ | 486 | $ | 422 | $ | 374 | $ | 473 | $ | 508 | $ | 544 | ||||||||||||||||
Sulfur (long ton)(p) | $ | 178 | $ | 169 | $ | 167 | $ | 123 | $ | 96 | $ | 128 | $ | 148 | $ | 154 | ||||||||||||||||
Blended rock | $ | 64 | $ | 64 | $ | 58 | $ | 62 | $ | 64 | $ | 68 | $ | 60 | $ | 58 | ||||||||||||||||
Average Market prices ($/tonne) | ||||||||||||||||||||||||||||||||
Ammonia (tonne)(q) | $ | 644 | $ | 578 | $ | 489 | $ | 467 | $ | 455 | $ | 557 | $ | 547 | $ | 625 | ||||||||||||||||
Sulfur (long ton)(r) | $ | 153 | $ | 153 | $ | 111 | $ | 77 | $ | 104 | $ | 131 | $ | 135 | $ | 131 | ||||||||||||||||
Natural Gas(s) | $ | 3.5 | $ | 4.0 | $ | 3.6 | $ | 3.9 | $ | 4.7 | $ | 4.6 | $ | 4.0 | $ | 3.9 | ||||||||||||||||
Full production conversion cost/production tonne | $ | 79 | $ | 76 | $ | 76 | $ | 81 | $ | 89 | $ | 87 | $ | 82 | $ | 90 | ||||||||||||||||
EBITDA(d)/sales tonne(m) | $ | 131 | $ | 129 | $ | 78 | $ | 60 | $ | 108 | $ | 117 | $ | 126 | $ | 100 | ||||||||||||||||
Phosphates CAPEX (in millions) | $ | 98 | $ | 127 | $ | 114 | $ | 135 | $ | 116 | $ | 104 | $ | 85 | $ | 98 | ||||||||||||||||
The Mosaic Company - International Distribution Segment
Selected Calendar Quarter Financial Information
(Unaudited)
Q1 2013 | Q2 2013 | Q3 2013 | Q4 2013 | Q1 2014 | Q2 2014 | Q3 2014 | Q4 2014 | |||||||||||||||||||||||||
Net Sales and Gross Margin (in millions, except per tonne) | ||||||||||||||||||||||||||||||||
Segment income statement | ||||||||||||||||||||||||||||||||
Net Sales | $ | 456 | $ | 615 | $ | 665 | $ | 549 | $ | 393 | $ | 542 | $ | 684 | $ | 516 | ||||||||||||||||
Cost of Goods Sold | 450 | 579 | 615 | 520 | 371 | 508 | 633 | 475 | ||||||||||||||||||||||||
Gross Margin | $ | 6 | $ | 36 | $ | 50 | $ | 29 | $ | 22 | $ | 34 | $ | 51 | $ | 41 | ||||||||||||||||
As % of Sales | 1 | % | 6 | % | 8 | % | 5 | % | 6 | % | 6 | % | 7 | % | 8 | % | ||||||||||||||||
Per tonne | $ | 8 | $ | 33 | $ | 39 | $ | 26 | $ | 25 | $ | 29 | $ | 36 | $ | 37 | ||||||||||||||||
SG&A and Other Operating Expenses | $ | 16 | $ | 19 | $ | 14 | $ | 19 | $ | 14 | $ | 18 | $ | 21 | $ | 19 | ||||||||||||||||
Segment Operating Earnings | $ | (10 | ) | $ | 17 | $ | 36 | $ | 10 | $ | 8 | $ | 16 | $ | 30 | $ | 22 | |||||||||||||||
Depreciation, Depletion and Amortization | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | ||||||||||||||||||||||||
EBITDA(d) | $ | (8 | ) | $ | 19 | $ | 38 | $ | 12 | $ | 10 | $ | 18 | $ | 32 | $ | 24 | |||||||||||||||
Operating Data | ||||||||||||||||||||||||||||||||
Sales volumes ('000 tonnes) | ||||||||||||||||||||||||||||||||
Total | 792 | 1,102 | 1,282 | 1,133 | 870 | 1,185 | 1,398 | 1,113 | ||||||||||||||||||||||||
Realized prices ($/tonne) | ||||||||||||||||||||||||||||||||
Blends (FOB destination) | $ | 557 | $ | 557 | $ | 504 | $ | 455 | $ | 449 | $ | 454 | $ | 469 | $ | 427 | ||||||||||||||||
Purchases ('000 tonnes) | ||||||||||||||||||||||||||||||||
DAP/MAP from Mosaic | 83 | 127 | 220 | 212 | 93 | 290 | 331 | 214 | ||||||||||||||||||||||||
MicroEssentials® from Mosaic | 106 | 124 | 161 | 131 | 147 | 168 | 83 | 56 | ||||||||||||||||||||||||
Potash from Mosaic/Canpotex | 216 | 377 | 205 | 340 | 269 | 484 | 261 | 334 | ||||||||||||||||||||||||
International Distribution CAPEX (in millions) | $ | 1 | $ | 12 | $ | 6 | $ | 8 | $ | 8 | $ | 11 | $ | 7 | $ | 9 | ||||||||||||||||
Working Capital (in millions)(t) | $ | 56 | $ | (51 | ) | $ | 103 | $ | 87 | $ | 38 | $ | (35 | ) | $ | 43 | $ | 170 | ||||||||||||||
EBITDA(d)/sales tonne(m) | $ | (10 | ) | $ | 17 | $ | 30 | $ | 11 | $ | 11 | $ | 15 | $ | 23 | $ | 22 | |||||||||||||||
The Mosaic Company - Corporate and Other Segment
Selected Calendar Quarter Financial Information
(Unaudited)
Q1 2013 | Q2 2013 | Q3 2013 | Q4 2013 | Q1 2014 | Q2 2014 | Q3 2014 | Q4 2014 | |||||||||||||||||||||||||
Net Sales and Gross Margin (in millions) | ||||||||||||||||||||||||||||||||
Segment income statement | ||||||||||||||||||||||||||||||||
Net Sales | $ | (112 | ) | $ | (152 | ) | $ | (172 | ) | $ | (91 | ) | $ | (99 | ) | $ | (197 | ) | $ | (159 | ) | $ | (112 | ) | ||||||||
Cost of Goods Sold | (92 | ) | (119 | ) | (218 | ) | (115 | ) | (73 | ) | (187 | ) | (133 | ) | (92 | ) | ||||||||||||||||
Gross Margin (loss) | $ | (20 | ) | $ | (33 | ) | $ | 46 | $ | 24 | $ | (26 | ) | $ | (10 | ) | $ | (26 | ) | $ | (20 | ) | ||||||||||
Elimination of profit in inventory (income) loss included in COGS | $ | 6 | $ | 8 | $ | (30 | ) | $ | (30 | ) | $ | 9 | $ | 29 | $ | (3 | ) | $ | (18 | ) | ||||||||||||
Unrealized (gain) loss on derivatives included in COGS | $ | 2 | $ | 19 | $ | (24 | ) | $ | 3 | $ | 4 | $ | (26 | ) | $ | 23 | $ | 31 | ||||||||||||||
Segment Operating Earnings | $ | (13 | ) | $ | (44 | ) | $ | (22 | ) | $ | 16 | $ | (57 | ) | $ | (21 | ) | $ | (10 | ) | $ | (21 | ) | |||||||||
Depreciation, Depletion and Amortization | 5 | 6 | 6 | 6 | 6 | 7 | 8 | 7 | ||||||||||||||||||||||||
Equity Earnings (Loss) | 1 | — | — | 1 | 1 | 1 | — | — | ||||||||||||||||||||||||
EBITDA(d) | $ | (7 | ) | $ | (38 | ) | $ | (16 | ) | $ | 23 | $ | (50 | ) | $ | (13 | ) | $ | (2 | ) | $ | (14 | ) | |||||||||
Footnotes
(a) | Diluted earnings per share has been previously published in our Form 10-Q reports and quarterly performance data. It is not impacted by the change in operating segments. |
(b) | Since Q4 2013, diluted weighted average number of shares reflects the impact of shares subject to the forward contract for our contractual share repurchase obligations. |
(c) | Includes a discrete income tax benefit of approximately $45 million in Q3 2013, $63 million in Q1 2014, $14 million in Q2 2014, $29 million in Q3 2014, $100 million in Q4 2014 and a discrete income tax expense of approximately $104 million in Q4 2013. |
(d) | The Company defines EBITDA as operating earnings plus depreciation, depletion and amortization plus equity earnings in nonconsolidated companies. EBITDA is a non-GAAP financial measure. Generally, a non-GAAP financial measure is a supplemental numerical measure of a company's performance, financial position or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with U.S. generally accepted accounting principles ("GAAP"). A reconciliation of EBITDA to the nearest comparable GAAP measure and an explanation of why we include EBITDA appear below under "Non-GAAP Reconciliation". |
(e) | Includes elimination of intersegment sales. |
(f) | Excludes tonnes sold by PhosChem for its other member. Effective December 31, 2013, we and PhosChem's other member each assumed responsibility for PhosChem's former activities as they related to our respective products. We subsequently dissolved PhosChem. |
(g) | Sales volumes include intersegment sales. |
(h) | FOB Plant, sales to unrelated parties. |
(i) | Includes inbound freight, outbound freight and warehousing costs on domestic MOP sales. |
(j) | The Company has presented gross margin excluding Canadian resource taxes and royalties (“CRT”) for Potash which is a non-GAAP financial measure. Generally, a non-GAAP financial measure is a supplemental numerical measure of a company’s performance, financial position or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. Gross margin excluding CRT provides a measure that we believe enhances the reader’s ability to compare our 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 the Company's presentation of gross margin excluding CRT for Potash affords them greater transparency in assessing the Company’s financial performance against competitors. Because not all companies use identical calculations, investors should consider that the Company's calculation 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, measures of financial performance prepared in accordance with GAAP. |
(k) | Q4 2014 operating rate includes an additional 600 thousand metric tonnes of annual capacity from our Colonsay expansion. |
(l) | This price excludes industrial and feed sales. |
(m) | Calculated as EBITDA divided by sales tonnes. |
(n) | Includes crop nutrient dry concentrates and animal feed ingredients. |
(o) | Amounts are representative of our average ammonia costs in cost of goods sold. |
(p) | Amounts are representative of our average sulfur cost in cost of goods sold. |
(q) | Three point quarterly average (Fertecon). |
(r) | Three point quarterly average (Green Markets). |
(s) | Three point quarterly average (NYMEX). |
(t) | Calculated as current assets less cash and liabilities for the International Distribution segment. |
The Mosaic Company
Selected Calendar Quarter Financial Information
(Unaudited)
Non-GAAP Reconciliation
EBITDA is provided to assist securities analysts, investors, lenders and others in their comparisons of operational performance, valuation and debt capacity across companies with differing capital, tax and legal structures. EBITDA should not be considered as an alternative to, or more meaningful than, net income as a measure of operating performance. Since EBITDA is not a measure determined in accordance with GAAP and is thus susceptible to varying interpretations and calculations, EBITDA, as presented, may not be comparable to other similarly titled measures of other companies. A reconciliation of net income to EBITDA is included below.
Q1 2013 | Q2 2013 | Q3 2013 | Q4 2013 | Q1 2014 | Q2 2014 | Q3 2014 | Q4 2014 | |||||||||||||||||||||||||
Potash EBITDA(d) | $ | 392 | $ | 451 | $ | 155 | $ | 173 | $ | 257 | $ | 281 | $ | 158 | $ | 316 | ||||||||||||||||
Phosphates EBITDA(d) | 271 | 267 | 136 | 143 | 221 | 309 | 275 | 239 | ||||||||||||||||||||||||
ID EBITDA(d) | (8 | ) | 19 | 38 | 12 | 10 | 18 | 32 | 24 | |||||||||||||||||||||||
Corporate EBITDA(d) | (7 | ) | (38 | ) | (16 | ) | 23 | (50 | ) | (13 | ) | (2 | ) | (14 | ) | |||||||||||||||||
Consolidated EBITDA(d) | $ | 648 | $ | 699 | $ | 313 | $ | 351 | $ | 438 | $ | 595 | $ | 463 | $ | 565 | ||||||||||||||||
Consolidated Foreign Currency Gain/(Loss) | 17 | 22 | (30 | ) | 25 | 43 | (39 | ) | 27 | 47 | ||||||||||||||||||||||
Consolidated Gain (Loss) in Value of Share Repurchase Agreement | — | — | — | 73 | (60 | ) | (5 | ) | 5 | — | ||||||||||||||||||||||
Consolidated Interest Income/(Expense) | 4 | — | 2 | (12 | ) | (27 | ) | (25 | ) | (25 | ) | (31 | ) | |||||||||||||||||||
Consolidated Depreciation, Depletion & Amortization | 155 | 168 | 166 | 167 | 174 | 194 | 190 | 193 | ||||||||||||||||||||||||
Consolidated Non-Controlling Interest | — | — | 1 | 1 | — | — | 1 | 1 | ||||||||||||||||||||||||
Consolidated Provision from/(Benefit for)Income Taxes | 134 | 126 | (6 | ) | 131 | (3 | ) | 83 | 78 | 27 | ||||||||||||||||||||||
Consolidated Other Income (Expense) | — | 3 | — | (9 | ) | (5 | ) | (1 | ) | 1 | 1 | |||||||||||||||||||||
Consolidated Net Income | $ | 380 | $ | 430 | $ | 124 | $ | 129 | $ | 218 | $ | 248 | $ | 202 | $ | 361 | ||||||||||||||||
Furnished herewith as Exhibit 99.2 and incorporated by reference herein is a copy of a presentation entitled “Segment Reporting Changes March 2015,” which provides additional information regarding the Realignment and updated first quarter and full year guidance for 2015 reflecting the Realignment.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
Reference is made to the Exhibit Index hereto with respect to the exhibits furnished herewith. The exhibits listed in the Exhibit Index hereto are being “furnished” in accordance with General Instruction B.2. of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, nor shall they be deemed to be incorporated by reference in any filing under the Securities Act or the Exchange Act, except as expressly set forth by specific reference in such filing.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
THE MOSAIC COMPANY | ||||||
Date: March 13, 2015 | By: | /s/ Mark J. Isaacson | ||||
Name: | Mark J. Isaacson | |||||
Title: | Vice President, General Counsel | |||||
and Corporate Secretary | ||||||
EXHIBIT INDEX
Exhibit No. | Description | |
99.1 | Press release, dated March 13, 2015, of The Mosaic Company regarding the realignment of its business segments. | |
99.2 | Presentation entitled "Segment Reporting Changes March 2015" | |