Raises Full-Year Adjusted EBITDA and EPS Guidance
The Mosaic Company (NYSE: MOS) today reported second quarter 2018 net
earnings of $68 million. EBITDA(1) during the quarter was
$333 million, or $461 million adjusted for notable items, up both
sequentially and year over year. Second quarter earnings per share were
$0.18, which included a negative impact of $0.22 per share from notable
items, primarily related to non-cash currency translation charges and
costs related to the Vale Fertilizantes acquisition, partially offset by
discrete tax benefits. Adjusted earnings per share(1) during
the second quarter of 2018 were $0.40, ahead of both last year and the
first quarter of 2018.
Highlights:
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Guiding to full-year adjusted EBITDA(1) in the range of
$1.80 - $1.95 billion, up from the previously increased $1.70 - $1.90
billion range.
-
Raising full-year adjusted EPS(1) guidance to $1.45 -
$1.80, from $1.20 - $1.60, due to strong underlying business
performance and lower expected full-year effective tax rate.
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Generated cash flow from operating activities of $807 million in the
quarter, benefiting from strong business performance and prepayments
from customers in Brazil.
-
Delivered on Mosaic Fertilizantes synergy targets with $56 million in
gross synergies realized year-to-date, or $34 million net of costs to
achieve them. Run rate savings were well over $100 million as of June
30, 2018.
-
Achieved record MicroEssentials® sales volumes in the
second quarter.
-
Paid down an additional $200 million of long-term debt subsequent to
quarter end, reaching our full-year 2018 debt retirement target of
$500 million.
(1) See “Non-GAAP Financial Measures” for additional
information and reconciliation.
“We are seeing positive developments in potash and phosphate markets and
we expect the momentum to continue,” said Joc O’Rourke, President and
Chief Executive Officer. “Strong operational performance across our
three business units and constructive market developments are driving
improved earnings and cash flow. We are making excellent progress on the
transformational initiatives at Mosaic Fertilizantes and are well
positioned to benefit from today’s improved business environment.”
Mosaic’s net sales in the second quarter of 2018 were $2.2 billion,
compared to $1.8 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 $196
million, up from $95 million a year ago, driven by higher gross margins
in all segments.
Cash flow from operating activities in the second quarter of 2018 was
$807 million compared to $243 million in the prior year. The current
period cash flow benefitted from strong business performance, customer
prepayments in Brazil and seasonal reversal of negative working capital
trends from the first quarter of 2018. Capital expenditures totaled $201
million in the quarter. Mosaic’s total cash and cash equivalents,
excluding restricted cash, were $1.0 billion and long-term debt was $5.0
billion as of June 30, 2018. Subsequent to quarter end, the Company used
$200 million in cash to further reduce long-term debt.
“Mosaic is well ahead of schedule to achieve its debt pay-down target of
$700 million by the end of 2020,” said Joc O’Rourke. “In fact, we have
paid down $500 million in debt this year, which brings us closer to our
through-cycle balance sheet targets. As we look ahead, our capital
priorities remain unchanged: maintain a strong balance sheet, sustain
our assets, invest to grow the business and return excess to
shareholders.”
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Phosphates Results*
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2Q 2018
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1Q 2018
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2Q 2017
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Sales Volumes million tonnes
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2.3
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1.9
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2.6
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Gross Margin (GAAP) per tonne
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$67
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$49
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$29
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Adjusted Gross Margin (non-GAAP) per tonne
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$70
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$57
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$29
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*Tonnes = finished product tonnes
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Net sales in the Phosphates segment were $1.1 billion for the second
quarter, up from $975 million last year, with higher average sales
prices more than offsetting lower sales volumes that resulted from
Mosaic’s decision to temporarily idle its Plant City concentrates
facility. Gross margin was $154 million for the second quarter and
included a negative $6 million notable item due to refinement of our
weighted average inventory costing, compared to $76 million for the same
period a year ago. The increase in the second quarter gross margin was
primarily driven by higher average sales prices, as well as operational
improvements that lowered controllable operating costs in the segment.
These benefits were partially offset by higher sulfur costs, as well as
the notable item discussed above.
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Potash Results
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2Q 2018
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1Q 2018
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2Q 2017
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Sales Volumes million tonnes
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2.4
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1.7
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2.2
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Gross Margin (GAAP) per tonne
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$56
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$61
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$50
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Adjusted Gross Margin (non-GAAP) per tonne
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$58
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$64
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$50
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Net sales in the Potash segment totaled $569 million for the second
quarter, up from $468 million last year, driven by both higher average
sales prices and higher sales volumes. Gross margin was $132 million for
the second quarter and included a negative $4 million notable item due
to refinement of our weighted average inventory costing, compared to
$110 million for the same period a year ago. The improvement in gross
margin was primarily driven by higher average sales prices, partially
offset by increased costs of goods in inventory from the impact of the
first quarter’s weather and logistics related containment issues. MOP
cash costs, including brine management costs, were $85 per tonne, higher
than last year’s levels primarily as a result of a negative impact from
the stronger Canadian dollar compared with a year ago and timing of
turn-arounds.
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Mosaic Fertilizantes Results*
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2Q 2018
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1Q 2018
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2Q 2017
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Sales Volumes million tonnes
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1.8
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1.6
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1.3
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Gross Margin (GAAP) per tonne
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$29
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$37
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$19
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Adjusted Gross Margin (non GAAP) per tonne
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$29
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$37
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$19
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*Tonnes = finished product tonnes
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Net sales in the Mosaic Fertilizantes segment were $713 million for the
second quarter, up from $467 million last year. Gross margin was $53
million, compared to $25 million for the same period a year ago. The
year-over-year increase in gross margin is primarily driven by the
acquisition of Vale Fertilizantes. Gross margin was negatively impacted
by $11 million related to the trucker strike in Brazil and $27 million
from turnaround and related idle plant expenses. Gross margin also
benefitted from a $16 million purchase price fair market value
adjustment of acquired inventory. The benefit is expected to be
immaterial going forward.
Mosaic Fertilizantes segment total finished product sales volumes were
up year over year, primarily as a result of the acquisition of Vale
Fertilizantes, partially offset by the impact of the trucker strike
which reduced sales volumes by an estimated 300 thousand tonnes.
Mosaic Fertilizantes continues to be on track to achieve $100 million in
net synergies in 2018 with gross year-to-date realized synergies of $56
million, or $34 million net of costs to achieve them. Run rate savings
were well over $100 million as of June 30, 2018.
Other
Selling, General and Administrative (SG&A) expenses were $79 million for
the second quarter, up from $71 million last year, primarily as a result
of a larger business footprint in Brazil.
While the reported tax rate during the second quarter of 2018 was 5
percent, excluding discrete items the calculated GAAP effective tax rate
was 22 percent. Mosaic expects to pay minimal cash income taxes in 2018.
Mosaic believes there may be continued volatility in its effective tax
rate due to changing interpretations of the new tax laws and changes in
valuation allowances, but currently expects the 2018 effective tax rate
to be in the mid-20 percent range.
Financial Guidance
“Despite trade uncertainties and volatile grain prices, fertilizer
remains affordable, which underpins strong demand expectations,”
O’Rourke said. “This, combined with continued delays in new supply
additions and Mosaic’s progress on transformative cost initiatives, puts
Mosaic in an excellent position to create sustainable shareholder value
over the long term.”
Mosaic has updated earnings guidance ranges:
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$ in millions except per share
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2018 Guidance
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Reported YTD 6/30/2018
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Adjusted EBITDA(1)
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$1,800 - $1,950
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$833
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Adjusted earnings per share(1)
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$1.45 - $1.80
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$0.60
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Capital Expenditures
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$900 - $1,100
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$424
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(1) See “Non-GAAP Financial Measures” for additional
information and reconciliation.
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Assumptions embedded in the full-year guidance include:
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In Millions*
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Full-Year 2018 Assumptions
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Reported YTD 6/30/2018
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Potash tonnes sold**
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8.3 - 8.9
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4.1
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Phosphates tonnes sold
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8.3 - 8.9
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4.2
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Mosaic Fertilizantes tonnes sold
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8.7 - 9.5
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3.4
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SG&A Expenses
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$325 - $350
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$173
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*Tonnes = finished product tonnes
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** Full-year sales volume reflects ~400,000 tonne reduction from
Canpotex’ change in revenue recognition.
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For the third quarter of 2018, Mosaic expects:
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Sales Volumes
millions of tonnes*
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Adjusted Gross Margin(1)
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Potash
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2.2 – 2.5
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$55 – $65 per tonne
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Phosphates
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2.1 – 2.4
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$75 – $85 per tonne
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Mosaic Fertilizantes
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3.2 – 3.6
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$35 – $45 per tonne
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Corporate and Other
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$0 – $15 million
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*Tonnes = finished product tonnes
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(1) See “Non-GAAP Financial Measures” for additional
information and reconciliation.
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In the potash segment, we expect the negative impact of planned
maintenance turnarounds at our lowest cost mines, Esterhazy and Belle
Plaine, to be mostly offset by the increases in average realized selling
prices. Third quarter guidance assumes minimal sales volumes to China.
In the phosphates segment, higher average realized selling prices are
expected to more than offset higher raw material costs. The Company
expects to report another quarter of strong premium product sales
volumes.
In the Mosaic Fertilizantes segment, the impacts of higher average
realized selling prices and weaker local currency are expected to more
than offset the third quarter planned turn around at the Uberaba
facility. Risks to both volume and margin guidance are primarily
associated with the government’s published minimum freight tables
related to the trucker strike in May. The Company embedded a
negative 300 thousand tonne impact in full-year sales volumes
assumptions as a result of these minimum freight tables.
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, August 7, 2018, at
9:00 a.m. Eastern Time to discuss second 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 historical
periods beginning with the quarter ended June 30, 2016 are provided
under “Consolidated Data” 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.
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For the three months ended June 30, 2018, the Company reported the
following notable items which, combined, negatively impacted
earnings per share by $0.22:
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Amount
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Tax effect
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EPS impact
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Description
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Segment
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Line item
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(in millions)
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(in millions)
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(per share)
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Foreign currency transaction gain (loss)
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Consolidated
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Foreign currency transaction gain (loss)
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$
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(79
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)
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$
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18
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$
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(0.16
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)
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Unrealized gain (loss) on derivatives
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Corporate and Other
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Cost of goods sold
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(34
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)
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8
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(0.07
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)
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Integration costs
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Corporate and Other
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Other operating income (expense)
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(5
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)
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1
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(0.01
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)
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Costs to capture synergies
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Mosaic Fertilizantes
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Other operating income (expense)
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(6
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)
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1
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(0.01
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Refinement of inventory costing
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Potash
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Cost of goods sold
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(4
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)
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1
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(0.01
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Refinement of inventory costing
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Phosphates
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Cost of goods sold
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(6
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)
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1
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(0.01
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)
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Discrete tax items
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Consolidated
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(Provision for) benefit from income taxes
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—
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13
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0.04
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Sales tax refund
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Phosphates
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Other operating income (expense)
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6
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(1
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)
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0.01
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Total Notable Items
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$
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(128
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)
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$
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42
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$
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(0.22
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)
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For the three months ended June 30, 2017, the Company reported the
following notable items which, combined, negatively impacted
earnings per share by $0.01:
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Amount
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Tax effect
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EPS impact
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Description
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Segment
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Line item
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(in millions)
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(in millions)
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(per share)
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Foreign currency transaction gain
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Consolidated
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Foreign currency transaction gain (loss)
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$
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9
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$
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1
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$
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0.03
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Unrealized gain on derivatives
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Corporate and Other
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Cost of goods sold
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3
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—
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0.01
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Fees related to purchase of Vale Fertilizantes
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Corporate and Other
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Other operating expense
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|
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(5
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)
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|
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—
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|
|
|
(0.02
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)
|
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Discrete tax items
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Consolidated
|
|
(Provision for) benefit from income taxes
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|
|
—
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16
|
|
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|
0.04
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|
|
Pre-issuance hedging loss
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|
Consolidated
|
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Interest expense
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|
|
(8
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)
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|
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(1
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)
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|
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(0.02
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)
|
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Water loss expense
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|
Phosphates
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|
Other operating income (expense)
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|
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(14
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)
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|
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(1
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)
|
|
|
(0.04
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)
|
|
Miski Mayo
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|
Phosphates
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|
Equity in net earnings (loss) of nonconsolidated companies
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|
|
(5
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)
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|
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—
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|
|
|
(0.01
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)
|
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Total Notable Items
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|
|
|
|
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$
|
(20
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)
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|
$
|
15
|
|
|
$
|
(0.01
|
)
|
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Condensed Consolidated Statements of Earnings
(in
millions, except per share amounts)
|
|
|
|
|
|
|
|
The Mosaic Company
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
Net sales
|
|
$
|
2,205.0
|
|
|
$
|
1,754.6
|
|
|
$
|
4,138.7
|
|
|
$
|
3,332.7
|
|
|
Cost of goods sold
|
|
|
1,910.4
|
|
|
|
1,562.3
|
|
|
|
3,602.0
|
|
|
|
3,010.8
|
|
|
Gross margin
|
|
|
294.6
|
|
|
|
192.3
|
|
|
|
536.7
|
|
|
|
321.9
|
|
|
Selling, general and administrative expenses
|
|
|
79.3
|
|
|
|
71.2
|
|
|
|
172.9
|
|
|
|
152.1
|
|
|
Other operating expense
|
|
|
19.0
|
|
|
|
26.5
|
|
|
|
86.8
|
|
|
|
45.1
|
|
|
Operating earnings
|
|
|
196.3
|
|
|
|
94.6
|
|
|
|
277.0
|
|
|
|
124.7
|
|
|
Interest expense, net
|
|
|
(45.1
|
)
|
|
|
(36.4
|
)
|
|
|
(94.5
|
)
|
|
|
(62.2
|
)
|
|
Foreign currency transaction (loss) gain
|
|
|
(78.7
|
)
|
|
|
9.1
|
|
|
|
(110.9
|
)
|
|
|
18.0
|
|
|
Other (expense) income
|
|
|
(2.4
|
)
|
|
|
1.4
|
|
|
|
(8.0
|
)
|
|
|
(3.1
|
)
|
|
Earnings from consolidated companies before income taxes
|
|
|
70.1
|
|
|
|
68.7
|
|
|
|
63.6
|
|
|
|
77.4
|
|
|
Provision for (benefits from) income taxes
|
|
|
3.7
|
|
|
|
(22.6
|
)
|
|
|
(46.2
|
)
|
|
|
(12.9
|
)
|
|
Earnings from consolidated companies
|
|
|
66.4
|
|
|
|
91.3
|
|
|
|
109.8
|
|
|
|
90.3
|
|
|
Equity in net earnings (loss) of nonconsolidated companies
|
|
|
1.7
|
|
|
|
5.8
|
|
|
|
(1.6
|
)
|
|
|
5.7
|
|
|
Net earnings including noncontrolling interests
|
|
|
68.1
|
|
|
|
97.1
|
|
|
|
108.2
|
|
|
|
96.0
|
|
|
Less: Net income (loss) attributable to noncontrolling interests
|
|
|
0.2
|
|
|
|
(0.2
|
)
|
|
|
(2.0
|
)
|
|
|
(0.4
|
)
|
|
Net earnings attributable to Mosaic
|
|
$
|
67.9
|
|
|
$
|
97.3
|
|
|
$
|
110.2
|
|
|
$
|
96.4
|
|
|
Diluted net earnings per share attributable to Mosaic
|
|
$
|
0.18
|
|
|
$
|
0.28
|
|
|
$
|
0.29
|
|
|
$
|
0.27
|
|
|
Diluted weighted average number of shares outstanding
|
|
|
387.2
|
|
|
|
352.0
|
|
|
|
385.5
|
|
|
|
351.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Balance Sheets
(in millions,
except per share amounts)
|
|
|
|
|
|
|
|
The Mosaic Company
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
June 30,
2018
|
|
December 31,
2017
|
|
Assets
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
1,035.3
|
|
|
$
|
2,153.5
|
|
|
Receivables, net
|
|
|
624.9
|
|
|
|
642.6
|
|
|
Inventories
|
|
|
2,168.3
|
|
|
|
1,547.2
|
|
|
Other current assets
|
|
|
341.9
|
|
|
|
273.2
|
|
|
Total current assets
|
|
|
4,170.4
|
|
|
|
4,616.5
|
|
|
Property, plant and equipment, net
|
|
|
11,559.6
|
|
|
|
9,711.7
|
|
|
Investments in nonconsolidated companies
|
|
|
837.8
|
|
|
|
1,089.5
|
|
|
Goodwill
|
|
|
1,738.0
|
|
|
|
1,693.6
|
|
|
Deferred income taxes
|
|
|
515.7
|
|
|
|
254.6
|
|
|
Other assets
|
|
|
1,576.5
|
|
|
|
1,267.5
|
|
|
Total assets
|
|
$
|
20,398.0
|
|
|
$
|
18,633.4
|
|
|
Liabilities and Equity
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Short-term debt
|
|
$
|
20.2
|
|
|
$
|
6.1
|
|
|
Current maturities of long-term debt
|
|
|
261.2
|
|
|
|
343.5
|
|
|
Structured accounts payable arrangements
|
|
|
384.5
|
|
|
|
386.2
|
|
|
Accounts payable
|
|
|
774.8
|
|
|
|
540.9
|
|
|
Accrued liabilities
|
|
|
1,154.2
|
|
|
|
754.4
|
|
|
Total current liabilities
|
|
|
2,594.9
|
|
|
|
2,031.1
|
|
|
Long-term debt, less current maturities
|
|
|
4,736.5
|
|
|
|
4,878.1
|
|
|
Deferred income taxes
|
|
|
1,163.6
|
|
|
|
1,117.3
|
|
|
Other noncurrent liabilities
|
|
|
1,487.3
|
|
|
|
967.8
|
|
|
Equity:
|
|
|
|
|
|
Preferred Stock, $0.01 par value, 15,000,000 shares authorized, none
issued and outstanding as of June 30, 2018 and December 31, 2017
|
|
|
—
|
|
|
|
—
|
|
|
Common Stock, $0.01 par value, 1,000,000,000 shares authorized,
389,230,157 shares issued and 385,457,882 shares outstanding as of
June 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
|
|
|
981.7
|
|
|
|
44.5
|
|
|
Retained earnings
|
|
|
10,734.1
|
|
|
|
10,631.1
|
|
|
Accumulated other comprehensive loss
|
|
|
(1,523.2
|
)
|
|
|
(1,061.6
|
)
|
|
Total Mosaic stockholders' equity
|
|
|
10,196.4
|
|
|
|
9,617.5
|
|
|
Noncontrolling interests
|
|
|
219.3
|
|
|
|
21.6
|
|
|
Total equity
|
|
|
10,415.7
|
|
|
|
9,639.1
|
|
|
Total liabilities and equity
|
|
$
|
20,398.0
|
|
|
$
|
18,633.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Statements of Cash Flows
(in
millions, except per share amounts)
|
|
|
|
|
|
|
|
The Mosaic Company
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
Cash Flows from Operating Activities:
|
|
|
|
|
|
Net cash provided by operating activities
|
|
$
|
807.0
|
|
|
$
|
242.8
|
|
|
$
|
736.0
|
|
|
$
|
388.8
|
|
|
Cash Flows from Investing Activities:
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
(201.1
|
)
|
|
|
(168.5
|
)
|
|
|
(424.4
|
)
|
|
|
(392.3
|
)
|
|
Purchases of available-for-sale securities - restricted
|
|
|
(71.9
|
)
|
|
|
(530.2
|
)
|
|
|
(257.6
|
)
|
|
|
(1,266.3
|
)
|
|
Proceeds from sale of available-for-sale securities - restricted
|
|
|
65.4
|
|
|
|
521.8
|
|
|
|
249.4
|
|
|
|
1,256.1
|
|
|
Investments in consolidated affiliate
|
|
|
(4.9
|
)
|
|
|
(13.9
|
)
|
|
|
(3.6
|
)
|
|
|
(38.9
|
)
|
|
Acquisition, net of cash acquired
|
|
|
9.3
|
|
|
|
—
|
|
|
|
(985.3
|
)
|
|
|
—
|
|
|
Other
|
|
|
6.5
|
|
|
|
13.8
|
|
|
|
4.4
|
|
|
|
18.8
|
|
|
Net cash used in investing activities
|
|
|
(196.7
|
)
|
|
|
(177.0
|
)
|
|
|
(1,417.1
|
)
|
|
|
(422.6
|
)
|
|
Cash Flows from Financing Activities:
|
|
|
|
|
|
|
|
|
|
Payments of short-term debt
|
|
|
(88.9
|
)
|
|
|
(250.7
|
)
|
|
|
(88.9
|
)
|
|
|
(265.2
|
)
|
|
Proceeds from issuance of short-term debt
|
|
|
41.9
|
|
|
|
200.4
|
|
|
|
107.2
|
|
|
|
343.4
|
|
|
Payments of structured accounts payable arrangements
|
|
|
(202.5
|
)
|
|
|
(120.5
|
)
|
|
|
(438.2
|
)
|
|
|
(155.8
|
)
|
|
Proceeds from structured accounts payable arrangements
|
|
|
157.2
|
|
|
|
140.1
|
|
|
|
331.0
|
|
|
|
247.4
|
|
|
Payments of long-term debt
|
|
|
(107.0
|
)
|
|
|
(1.8
|
)
|
|
|
(313.9
|
)
|
|
|
(3.4
|
)
|
|
Proceeds from issuance of long-term debt
|
|
|
39.2
|
|
|
|
0.2
|
|
|
|
39.2
|
|
|
|
1.5
|
|
|
Cash dividends paid
|
|
|
(9.6
|
)
|
|
|
(52.7
|
)
|
|
|
(19.2
|
)
|
|
|
(149.1
|
)
|
|
Other
|
|
|
(0.2
|
)
|
|
|
(0.3
|
)
|
|
|
(0.4
|
)
|
|
|
(1.9
|
)
|
|
Net cash (used in) provided by financing activities
|
|
|
(169.9
|
)
|
|
|
(85.3
|
)
|
|
|
(383.2
|
)
|
|
|
16.9
|
|
|
Effect of exchange rate changes on cash
|
|
|
(65.0
|
)
|
|
|
1.5
|
|
|
|
(51.6
|
)
|
|
|
4.5
|
|
|
Net change in cash, cash equivalents and restricted cash
|
|
|
375.4
|
|
|
|
(18.0
|
)
|
|
|
(1,115.9
|
)
|
|
|
(12.4
|
)
|
|
Cash, cash equivalents and restricted cash - beginning of period
|
|
|
703.1
|
|
|
|
717.0
|
|
|
|
2,194.4
|
|
|
|
711.4
|
|
|
Cash, cash equivalents and restricted cash - end of period
|
|
$
|
1,078.5
|
|
|
$
|
699.0
|
|
|
$
|
1,078.5
|
|
|
$
|
699.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
$
|
1,035.3
|
|
|
$
|
660.6
|
|
|
Restricted cash in other current assets
|
|
|
|
|
|
|
|
|
|
|
8.5
|
|
|
|
7.2
|
|
|
Restricted cash in other assets
|
|
|
|
|
|
|
|
|
|
|
34.7
|
|
|
|
31.2
|
|
|
Total cash, cash equivalents and restricted cash shown in the
unaudited statement of cash flows
|
|
|
|
|
|
|
|
|
|
$
|
1,078.5
|
|
|
$
|
699.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Share Calculation
|
|
|
|
|
|
|
|
|
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
Net earnings attributable to Mosaic
|
|
$
|
67.9
|
|
|
$
|
97.3
|
|
|
$
|
110.2
|
|
|
$
|
96.4
|
|
|
Basic weighted average number of shares outstanding
|
|
|
385.4
|
|
|
|
351.0
|
|
|
|
384.0
|
|
|
|
350.8
|
|
|
Dilutive impact of share-based awards
|
|
|
1.8
|
|
|
|
1.0
|
|
|
|
1.5
|
|
|
|
1.0
|
|
|
Diluted weighted average number of shares outstanding
|
|
|
387.2
|
|
|
|
352.0
|
|
|
|
385.5
|
|
|
|
351.8
|
|
|
Basic net earnings per share attributable to Mosaic
|
|
$
|
0.18
|
|
|
$
|
0.28
|
|
|
$
|
0.29
|
|
|
$
|
0.27
|
|
|
Diluted net earnings per share attributable to Mosaic
|
|
$
|
0.18
|
|
|
$
|
0.28
|
|
|
$
|
0.29
|
|
|
$
|
0.27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20180806005537/en/
Copyright Business Wire 2018
