Solid Execution in a Competitive, Global Marketplace Drives Strong
Results
CF Industries Holdings, Inc. (NYSE: CF), a global leader in nitrogen
fertilizer manufacturing and distribution, today announced results for
its fiscal second quarter ended June 30, 2015.
Second Quarter Highlights
-
Strong operating results with record best safety incident rate.
-
Reported EBITDA(1) of $670 million.
-
Net earnings of $352 million or $1.49 per diluted share.
-
Executed a five-for-one share split on June 17, 2015.
-
Repurchased 4.8 million shares since start of second quarter, 233
million shares outstanding.
-
Focused portfolio: Acquisition of remaining GrowHow UK interest,
divestiture of Keytrade AG and Houston Ammonia Terminal interests.
-
Capacity expansions: Continued progress at both facilities with
Donaldsonville urea plant start up late third quarter or early fourth
quarter and UAN to follow late fourth quarter.
Year to Date Highlights
-
Reported EBITDA(1) of $1.16 billion.
-
Net earnings of $583 million or $2.44 per diluted share.
-
Repurchased 8.9 million shares since the beginning of 2015.
_______________________________________________________________________________
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(1)
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Earnings Before Interest, Taxes, Depreciation and Amortization.
See reconciliation of EBITDA in the table accompanying this
release.
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Stock Split
In May 2015, the company's board of directors declared a five-for-one
split of its common stock effected in the form of a stock dividend to
its common stockholders. The stock split was effective June 17, 2015 for
all stockholders of record on June 1, 2015. All share and per share data
has been retroactively restated to reflect the stock split.
Overview of Results
CF Industries Holdings, Inc. today announced second quarter 2015
reported EBITDA of $670 million and net earnings attributable to common
stockholders of $352 million, or $1.49 per diluted share. These results
compare to second quarter 2014 EBITDA of $613 million and net earnings
attributable to common stockholders of $313 million, or $1.22 per
diluted share. Certain items impacting the company's pre-tax income and
after-tax earnings per diluted share for the second quarter are detailed
in the Consolidated Results portion of this release.
“Solid execution by our sales team and in our production facilities and
distribution network led to the strong results for the quarter,” said
Tony Will, president and chief executive officer, CF Industries
Holdings, Inc. “Our financial results for the first half of 2015
demonstrate the sustainability of our cash generation capacity, even in
a supply-driven, competitive global market.”
Nitrogen product segments(2) net sales decreased in the
second quarter of 2015 to $1.31 billion from $1.45 billion in the same
period last year. The decrease was due to lower sales volume for all
products and lower average realized prices across all segments except
ammonia. Total company net sales in the prior year are not comparable
given the sale of the phosphate business in March 2014 and the small
level of phosphate sales that were recorded in April 2014.
Cost of sales declined 29 percent in the second quarter of 2015 compared
to the second quarter of 2014 due primarily to the decline in the cost
of purchased natural gas.
_______________________________________________________________________________
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(2)
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The company's nitrogen product segments consist of the ammonia,
granular urea, UAN and Other segments as described in this release.
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Industry Conditions
In the second quarter, the nitrogen market continued to be
supply-driven, with the large availability of internationally sourced
product limiting price upside.
Favorable weather conditions throughout the Midwest and Canada late in
the first quarter through May allowed the ammonia season to begin
earlier than normal and drove strong North American agricultural ammonia
demand, especially in the Western Cornbelt. However, international
ammonia prices, as indicated by the Tampa import price, declined during
the quarter due to high supply from the Middle East and Russia.
Late in the first quarter, the Chinese fertilizer industry association
announced an increase in export floor prices for urea, which caused
global prices to increase early in the second quarter. Many North
American urea buyers had delayed purchases, which contributed to tight
inventory conditions as imported urea was not able to reach regional
destinations in time to meet all farm-level demand. These factors
contributed to an increase in NOLA urea prices from $270 per ton at the
start of the quarter to a peak of $360 per ton during the quarter. By
late June, prices began to decline again toward the global cost floor,
$280-$290 per ton, as the spring season in the Northern Hemisphere came
to a close and retailers and wholesalers attempted to end the season
with low inventory.
UAN prices in North America declined during the second quarter due to a
high level of imports and lower UAN demand resulting from wet weather in
May and June, which limited post-plant applications. For the full
fertilizer year, however, UAN demand was broadly consistent with prior
years.
Outlook
CF Industries entered the third quarter with an excellent order book for
ammonia and UAN, supporting an expectation of 2016 fertilizer year
demand consistent with 2015 levels.
Wet weather and reduced yield estimates, especially for corn, had driven
price increases in grains, giving farmers opportunities to lock in
positive returns for the 2015 crop. As a result, the company forecasts
farmers to plant 89.5 million acres of corn next year, compared to 88.9
million acres in the current year. This is expected to support steady
North American nitrogen fertilizer demand, including direct application
of ammonia in the fall season.
Given current projections for total urea demand and supply from outside
of China, Chinese urea exports are expected to surpass 12 million tons
in 2015. Additionally, new operating capacity for urea outside of China
is estimated at 5.5 million tons in 2015, which will be the largest
single-year volume increase since the mid-1980s. Even with the
additional capacity, Chinese anthracite coal-based production will
continue to be the marginal global supplier. The global capacity
additions will keep pressure on urea and other nitrogen fertilizer
prices, particularly UAN. North American demand for UAN is projected
essentially unchanged in 2016 compared to 2015.
Natural Gas Costs
North American natural gas continues to provide the company a cost
advantage compared to other global producers. This enduring advantage
underpins CF Industries’ strong and sustainable cash generation
capacity. In the second quarter of 2015, the average cost of natural gas
purchased by the company was $2.67 per MMBtu, a 36 percent decline
year-over-year.
During the second quarter, gas rig counts stabilized from the previous
quarter's decline. As a result, natural gas production has remained
relatively strong and consistent. This production strength has more than
offset increased demand from coal-to-gas switching and exports to
Mexico, resulting in a current storage balance of 2.9 TCF, or 25.5
percent above last year at this time and approximately 3 percent above
the five-year average.
During the second quarter, CF Industries hedged additional natural gas
volumes for 2015 through 2017. The company has collars in place with
strike prices of $2.30 for the floor and $3.20 for the ceiling for an
average of 4.3 million MMBtus per month for July through December
(roughly 20 percent of the company’s 2015 gas requirements) and swaps
with an average price of $2.92 per MMBtu for an average of 9.4 million
MMBtus per month for July through December (roughly 45 percent of the
company’s 2015 gas requirements). The company remains approximately 35
percent un-hedged for the remainder of 2015.
For January through December of 2016, the company has entered into swaps
with an average strike price of $3.10 per MMBtu for an average of 9.9
million MMBtus per month (approximately 38 percent of the company’s 2016
gas requirements).
Additionally, the company hedged a portion of its gas needs in 2017 with
swaps at an average strike price of $3.35 per MMBtu for 8.3 million
MMBtus per month for January through December 2017 (approximately 30
percent of the company’s 2017 gas requirements).
In total, system-wide hedges through both collars and swaps account for
approximately 39 percent of the company’s gas requirements at a
weighted-average price of $3.13 per MMBtu for July 2015 through December
2017.
Capital Deployment Activities
During the second quarter, CF Industries continued to invest capital to
grow the business and increase total shareholder return.
Share Repurchases
In the second quarter, the company repurchased 4.5 million shares for
approximately $268 million. Subsequent to the quarter end, the company
repurchased 358,000 shares for $22.5 million, bringing shares
outstanding down to 233 million as of July 31, 2015. Including shares
repurchased during the first quarter, this brings the company’s
year-to-date share repurchases to 8.9 million shares for approximately
$527 million.
Capacity Expansion Projects Update
The company’s capacity expansion projects at Donaldsonville, Louisiana,
and Port Neal, Iowa, continued to make progress during the quarter.
Wet weather at Donaldsonville during the second quarter tripled the lost
work time that would normally be expected. As a result, the
Donaldsonville urea plant is expected to start up late in the third
quarter of 2015 or early in the fourth quarter of 2015, with the UAN
plant to follow later in the fourth quarter of 2015 and the ammonia
plant to follow in early 2016. The ammonia and urea plants at Port Neal
continue to be on schedule for start-up in 2016. The total capital cost
forecast remains in line with the estimate of $4.2 billion, plus or
minus a few percentage points.
Once completed, the expansion projects will increase CF Industries’
nitrogen capacity by more than 25 percent. As a result of the expansion,
the company’s nitrogen nutrient capacity per share will increase from
roughly 30 tons per thousand shares today to approximately 38 tons per
thousand shares by the end of 2016, with further growth potential based
on share repurchases.
For the full year 2015, the company expects total capital expenditures
in the range of $2.0 billion to $2.5 billion. This consists of between
$1.5 billion and $2.0 billion for the capacity expansion projects and
approximately $500 million of sustaining and other capital expenditures.
Portfolio Focus
Since the start of the second quarter, CF Industries took several steps
to focus its portfolio and help drive shareholder value.
-
Acquired the remaining interest of GrowHow UK for $580 million. The
acquisition closed on July 31, 2015, bringing the number of CF
Industries’ consolidated nitrogen complexes globally to nine.
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Sold the company’s 50 percent interest in Keytrade AG, a fertilizer
trading company located in Zurich, Switzerland.
-
Sold the company’s 50 percent interest in the Houston Ammonia
Terminal, an ammonia storage joint venture located in Houston, Texas.
Consolidated Results
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Three months ended
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Six months ended
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June 30,
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June 30,
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2015
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2014
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2015
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2014
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(in millions, except as noted)
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Net sales
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|
$
|
1,311.5
|
|
|
$
|
1,472.7
|
|
|
$
|
2,265.1
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|
|
$
|
2,605.3
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|
|
Cost of sales
|
|
625.6
|
|
|
882.4
|
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|
1,163.4
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|
1,572.2
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Gross margin
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|
$
|
685.9
|
|
|
$
|
590.3
|
|
|
$
|
1,101.7
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|
|
$
|
1,033.1
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|
|
|
|
|
|
|
|
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Gross margin percentage
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52.3
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%
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|
40.1
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%
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|
48.6
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%
|
|
39.7
|
%
|
|
|
|
|
|
|
|
|
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EBITDA
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|
$
|
669.5
|
|
|
$
|
613.0
|
|
|
$
|
1,155.6
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|
|
$
|
1,872.7
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|
|
|
|
|
|
|
|
|
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Net earnings attributable to common stockholders
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|
$
|
351.9
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|
|
$
|
312.6
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|
|
$
|
582.5
|
|
|
$
|
1,021.1
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|
|
|
|
|
|
|
|
|
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Diluted earnings per share(1)
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$
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1.49
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|
|
$
|
1.22
|
|
|
$
|
2.44
|
|
|
$
|
3.85
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|
|
|
|
|
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|
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Tons of product sold (000s):
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|
|
|
|
|
|
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Nitrogen product segments
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3,611
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|
3,790
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|
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6,523
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|
|
6,808
|
|
|
Phosphate segment
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—
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|
|
59
|
|
|
—
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|
|
487
|
|
|
Total tons of product sold
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|
3,611
|
|
|
3,849
|
|
|
6,523
|
|
|
7,295
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Cost of natural gas:
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|
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Purchased natural gas costs (per MMBtu)(2)
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|
$
|
2.60
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|
|
$
|
4.65
|
|
|
$
|
2.78
|
|
|
$
|
4.95
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|
Realized derivatives loss (gain) (per MMBtu)(3)
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|
0.07
|
|
|
(0.46
|
)
|
|
0.29
|
|
|
(0.68
|
)
|
|
Cost of natural gas (per MMBtu)
|
|
$
|
2.67
|
|
|
$
|
4.19
|
|
|
$
|
3.07
|
|
|
$
|
4.27
|
|
|
|
|
|
|
|
|
|
|
|
|
Average daily market price of natural gas
|
|
|
|
|
|
|
|
|
|
Henry Hub (per MMBtu)
|
|
$
|
2.72
|
|
|
$
|
4.58
|
|
|
$
|
2.80
|
|
|
$
|
4.81
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
$
|
587.1
|
|
|
$
|
292.6
|
|
|
$
|
1,031.9
|
|
|
$
|
685.0
|
|
|
|
|
|
|
|
|
|
|
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Production volume by product tons (000s):
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|
|
|
|
|
|
|
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Ammonia(4)
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1,843
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|
|
1,747
|
|
|
3,660
|
|
|
3,547
|
|
|
Granular urea
|
|
593
|
|
|
646
|
|
|
1,218
|
|
|
1,192
|
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|
UAN (32%)
|
|
1,484
|
|
|
1,385
|
|
|
2,914
|
|
|
2,934
|
|
_______________________________________________________________________________
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(1)
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On June 17, 2015, CF Industries common stock split 5 for 1. The
per share amounts for all prior periods have been restated to
reflect the stock split.
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(2)
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Includes the cost of natural gas purchased during the period for use
in production.
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(3)
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Includes the realized gains and losses on natural gas derivatives
settled during the period. Excludes unrealized mark-to-market gains
and losses on natural gas derivatives.
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(4)
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Gross ammonia production including amounts subsequently upgraded
into other products.
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CF Industries recognized revenue from the phosphate business as recently
as the early part of the second quarter of 2014 due to sales of
phosphate inventory that remained in its distribution system after the
sale of the phosphate business to The Mosaic Company in the first
quarter of 2014. Because of the sale of the phosphate business, the
phosphate segment ceased to have reported results after the second
quarter of 2014. The phosphate segment will continue to be shown only
until there are no prior year results from this segment.
Comparison of 2015 to 2014 Second Quarter periods:
-
Net sales for the nitrogen product segments decreased primarily due to
decreased sales volumes in urea and UAN and lower average prices in
these segments due to a competitive global pricing environment. These
were partially offset by a higher average realized price for ammonia.
-
EBITDA increased due to lower natural gas costs compared to the prior
year, an unrealized gain of $18.4 million on natural gas derivatives
compared to an unrealized loss of $28.6 million in 2014, and a gain on
foreign currency derivatives in 2015 compared to losses on foreign
currency derivatives in 2014. These were partially offset by a loss
associated with the sale of non-operating equity method investment.
Certain items impacting the company's income and after-tax earnings per
diluted share for the second quarter of 2015 and 2014 are highlighted
below:
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Three months ended June 30, 2015
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Three months ended June 30, 2014
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After-tax EPS
|
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|
|
After-tax EPS
|
|
|
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Pre-tax Impact
|
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Impact
|
|
Pre-tax Impact
|
|
Impact
|
|
|
|
(in millions, except per share amounts)
|
|
Loss/(gain) on mark-to-market - natural gas
|
|
$
|
(18.4
|
)
|
|
$
|
(0.05
|
)
|
|
$
|
28.6
|
|
|
$
|
0.07
|
|
Loss/(gain) on foreign currency derivatives
|
|
(4.5
|
)
|
|
(0.01
|
)
|
|
1.1
|
|
|
—
|
|
Expansion project expenses
|
|
12.6
|
|
|
0.03
|
|
|
7.0
|
|
|
0.02
|
|
Loss on sale of equity method investments
|
|
42.8
|
|
|
0.13
|
|
|
—
|
|
|
—
|
|
Loss/expense/(gain/income) sub-total
|
|
$
|
32.5
|
|
|
$
|
0.10
|
|
|
$
|
36.7
|
|
|
$
|
0.09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First half 2015 reported EBITDA was $1.2 billion and net earnings
attributable to common stockholders was $583 million, or $2.44 per
diluted share, compared to EBITDA of $1.9 billion and net earnings
attributable to common stockholders of $1.0 billion, or $3.85 per
diluted share, for the comparable period in 2014. First half 2014 EBITDA
included $747 million of pre-tax gain on sale of the phosphate business,
and net earnings included $461 million, or $1.74 per diluted share, of
after-tax gain.
Certain items impacting the company's income and after-tax earnings per
diluted share for the first six months of 2015 and 2014 are highlighted
below.
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Six months ended June 30, 2015
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Six months ended June 30, 2014
|
|
|
|
|
|
After-tax EPS
|
|
|
|
After-tax EPS
|
|
|
|
Pre-tax Impact
|
|
Impact
|
|
Pre-tax Impact
|
|
Impact
|
|
|
|
(in millions, except per share amounts)
|
|
Loss/(gain) on mark-to-market - natural gas
|
|
$
|
(47.1
|
)
|
|
$
|
(0.12
|
)
|
|
$
|
51.2
|
|
|
$
|
0.12
|
|
|
Loss/(gain) on foreign currency derivatives
|
|
18.7
|
|
|
0.05
|
|
|
0.2
|
|
|
—
|
|
|
Expansion project expenses
|
|
21.7
|
|
|
0.06
|
|
|
15.1
|
|
|
0.04
|
|
|
Loss on sale of equity method investments
|
|
42.8
|
|
|
0.13
|
|
|
—
|
|
|
—
|
|
|
Gain on sale of phosphate business
|
|
—
|
|
|
—
|
|
|
(747.1
|
)
|
|
(1.74
|
)
|
|
Loss/expense/(gain/income) sub-total
|
|
$
|
36.1
|
|
|
$
|
0.12
|
|
|
$
|
(680.6
|
)
|
|
$
|
(1.58
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Segment Results
Ammonia Segment
CF Industries’ ammonia segment produces anhydrous ammonia (ammonia),
which is the company’s most concentrated nitrogen fertilizer, containing
82 percent nitrogen. The results of the ammonia segment consist of sales
of ammonia to external customers. In addition, ammonia is the “basic”
nitrogen product that the company upgrades into other nitrogen
fertilizers such as urea and UAN solution.
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|
|
|
|
|
|
Three months ended
|
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Six months ended
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
(in millions, except as noted)
|
|
Net sales
|
|
$
|
599.0
|
|
|
$
|
604.8
|
|
|
$
|
886.7
|
|
|
$
|
877.2
|
|
|
Cost of sales
|
|
260.0
|
|
|
376.4
|
|
|
427.8
|
|
|
524.5
|
|
|
Gross margin
|
|
$
|
339.0
|
|
|
$
|
228.4
|
|
|
$
|
458.9
|
|
|
$
|
352.7
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin percentage
|
|
56.6
|
%
|
|
37.8
|
%
|
|
51.8
|
%
|
|
40.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Sales volume by product tons (000s)
|
|
1,060
|
|
|
1,112
|
|
|
1,591
|
|
|
1,689
|
|
|
Sales volume by nutrient tons (000s)(1)
|
|
870
|
|
|
912
|
|
|
1,305
|
|
|
1,385
|
|
|
|
|
|
|
|
|
|
|
|
|
Average selling price per product ton
|
|
$
|
565
|
|
|
$
|
544
|
|
|
$
|
557
|
|
|
$
|
519
|
|
|
Average selling price per nutrient ton(1)
|
|
689
|
|
|
663
|
|
|
679
|
|
|
633
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin per product ton
|
|
$
|
320
|
|
|
$
|
205
|
|
|
$
|
288
|
|
|
$
|
209
|
|
|
Gross margin per nutrient ton(1)
|
|
390
|
|
|
250
|
|
|
352
|
|
|
255
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
$
|
21.0
|
|
|
$
|
17.6
|
|
|
$
|
43.5
|
|
|
$
|
36.8
|
|
_______________________________________________________________________________
|
(1)
|
|
Nutrient tons represent the tons of nitrogen within the product
tons.
|
|
|
|
|
Comparison of 2015 to 2014 Second Quarter periods:
-
Ammonia sales volume decreased by 5 percent in the second quarter of
2015 from record levels seen in the second quarter of 2014 due to
lower sales in the Eastern Cornbelt on account of wet weather.
-
Average selling prices increased in the second quarter of 2015
compared to 2014 due primarily to more favorable application
conditions driving stronger demand for agricultural ammonia as
customers showed a preference for ammonia compared to other forms of
nitrogen.
-
Ammonia gross margin and gross margin per ton increased in 2015 from
2014 due to both higher average selling prices and significantly lower
gas costs leading to lower cost of sales.
Granular Urea Segment
CF Industries’ granular urea segment produces granular urea, which
contains 46 percent nitrogen. Produced from ammonia and carbon dioxide,
it has the highest nitrogen content of any of the company’s solid
nitrogen fertilizers.
|
|
|
|
|
|
|
|
|
Three months ended
|
|
Six months ended
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
(in millions, except as noted)
|
|
Net sales
|
|
$
|
211.0
|
|
|
$
|
267.6
|
|
|
$
|
423.2
|
|
|
$
|
483.8
|
|
|
Cost of sales
|
|
92.4
|
|
|
142.9
|
|
|
192.5
|
|
|
257.4
|
|
|
Gross margin
|
|
$
|
118.6
|
|
|
$
|
124.7
|
|
|
$
|
230.7
|
|
|
$
|
226.4
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin percentage
|
|
56.2
|
%
|
|
46.6
|
%
|
|
54.5
|
%
|
|
46.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Sales volume by product tons (000s)
|
|
600
|
|
|
677
|
|
|
1,216
|
|
|
1,255
|
|
|
Sales volume by nutrient tons (000s)(1)
|
|
276
|
|
|
311
|
|
|
559
|
|
|
577
|
|
|
|
|
|
|
|
|
|
|
|
|
Average selling price per product ton
|
|
$
|
352
|
|
|
$
|
395
|
|
|
$
|
348
|
|
|
$
|
385
|
|
|
Average selling price per nutrient ton(1)
|
|
764
|
|
|
860
|
|
|
757
|
|
|
838
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin per product ton
|
|
$
|
198
|
|
|
$
|
184
|
|
|
$
|
190
|
|
|
$
|
180
|
|
|
Gross margin per nutrient ton(1)
|
|
430
|
|
|
401
|
|
|
413
|
|
|
392
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
$
|
10.1
|
|
|
$
|
10.0
|
|
|
$
|
20.3
|
|
|
$
|
17.9
|
|
_______________________________________________________________________________
|
(1)
|
|
Nutrient tons represent the tons of nitrogen within the product
tons.
|
|
|
|
|
Comparison of 2015 to 2014 Second Quarter periods:
-
Granular urea sales volume decreased as supply availability was
reduced due to plant maintenance and tie-ins related to the capacity
expansions at Donaldsonville, limiting sales.
-
Granular urea average price per ton decreased due to an abundance of
global supply, primarily from China.
-
Gross margin per ton improved in 2015 compared to 2014 driven by lower
gas costs leading to lower cost of sales despite a lower average
selling price. Gross margin for the first six months of 2015 compares
favorably to 2014, driven by lower gas cost.
UAN Segment
CF Industries’ UAN segment produces urea ammonium nitrate solution
(UAN). UAN is a liquid fertilizer product with nitrogen content that
typically ranges from 28 percent to 32 percent and is produced by
combining urea and ammonium nitrate in solution.
|
|
|
|
|
|
|
|
|
Three months ended
|
|
Six months ended
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
(in millions, except as noted)
|
|
Net sales
|
|
$
|
407.4
|
|
|
$
|
456.5
|
|
|
$
|
763.1
|
|
|
$
|
856.4
|
|
|
Cost of sales
|
|
204.8
|
|
|
255.2
|
|
|
401.8
|
|
|
473.0
|
|
|
Gross margin
|
|
$
|
202.6
|
|
|
$
|
201.3
|
|
|
$
|
361.3
|
|
|
$
|
383.4
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin percentage
|
|
49.7
|
%
|
|
44.1
|
%
|
|
47.3
|
%
|
|
44.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Sales volume by product tons (000s)
|
|
1,504
|
|
|
1,526
|
|
|
2,821
|
|
|
2,977
|
|
|
Sales volume by nutrient tons (000s)(1)
|
|
475
|
|
|
482
|
|
|
889
|
|
|
938
|
|
|
|
|
|
|
|
|
|
|
|
|
Average selling price per product ton
|
|
$
|
271
|
|
|
$
|
299
|
|
|
$
|
271
|
|
|
$
|
288
|
|
|
Average selling price per nutrient ton(1)
|
|
858
|
|
|
947
|
|
|
858
|
|
|
913
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin per product ton
|
|
$
|
135
|
|
|
$
|
132
|
|
|
$
|
128
|
|
|
$
|
129
|
|
|
Gross margin per nutrient ton(1)
|
|
427
|
|
|
418
|
|
|
406
|
|
|
409
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
$
|
46.2
|
|
|
$
|
44.8
|
|
|
$
|
96.8
|
|
|
$
|
96.6
|
|
_______________________________________________________________________________
|
(1)
|
|
Nutrient tons represent the tons of nitrogen within the product
tons.
|
|
|
|
|
Comparison of 2015 to 2014 Second Quarter periods:
-
UAN sales volume decreased as wet weather towards the end of the
quarter impacted demand. Additionally, fewer attractive sales
opportunities where product was available put pressure on volumes.
-
UAN average price per ton decreased due to a combination of increased
imports into North America and a reduction in demand associated with
wet weather, particularly in the Eastern Cornbelt.
-
UAN gross margin per ton improved in 2015 compared to 2014, driven by
lower gas costs leading to lower cost of sales, despite a lower
average selling price.
Other Segment
CF Industries’ other segment includes ammonium nitrate (AN), diesel
exhaust fluid (DEF) and urea liquor. AN is a granular, nitrogen-based
product with a nitrogen content of 34 percent. DEF is an aqueous urea
solution made with 32.5 percent high-purity urea and 67.5 percent
deionized water. Urea liquor is a liquid product that the company sells
as a chemical intermediate in concentrations of 40 percent, 50 percent
and 70 percent urea.
|
|
|
|
|
|
|
|
|
Three months ended
|
|
Six months ended
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
(in millions, except as noted)
|
|
Net sales
|
|
$
|
94.1
|
|
|
$
|
120.5
|
|
|
$
|
192.1
|
|
|
$
|
219.5
|
|
|
Cost of sales
|
|
68.4
|
|
|
86.2
|
|
|
141.3
|
|
|
159.0
|
|
|
Gross margin
|
|
$
|
25.7
|
|
|
$
|
34.3
|
|
|
$
|
50.8
|
|
|
$
|
60.5
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin percentage
|
|
27.3
|
%
|
|
28.5
|
%
|
|
26.4
|
%
|
|
27.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Sales volume by product tons (000s)
|
|
447
|
|
|
475
|
|
|
895
|
|
|
887
|
|
|
Sales volume by nutrient tons (000s)(1)
|
|
121
|
|
|
132
|
|
|
241
|
|
|
245
|
|
|
|
|
|
|
|
|
|
|
|
|
Average selling price per product ton
|
|
$
|
211
|
|
|
$
|
254
|
|
|
$
|
215
|
|
|
$
|
247
|
|
|
Average selling price per nutrient ton(1)
|
|
778
|
|
|
913
|
|
|
797
|
|
|
896
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin per product ton
|
|
$
|
57
|
|
|
$
|
72
|
|
|
$
|
57
|
|
|
$
|
68
|
|
|
Gross margin per nutrient ton(1)
|
|
212
|
|
|
260
|
|
|
211
|
|
|
247
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
$
|
17.1
|
|
|
$
|
15.6
|
|
|
$
|
39.6
|
|
|
$
|
31.3
|
|
_______________________________________________________________________________
|
(1)
|
|
Nutrient tons represent the tons of nitrogen within the product
tons.
|
|
|
|
|
Comparison of 2015 to 2014 Second Quarter periods:
-
Other segment volume was lower due to reduced AN demand from
agricultural customers.
-
Other segment average selling price decreased due to a shift in
product mix to lower-priced industrial AN from agricultural AN.
-
Other segment cost of sales decreased primarily due to lower realized
natural gas costs and unrealized gains on natural gas derivatives in
2015 compared to unrealized losses in 2014.
Environmental, Health & Safety Performance
As of June 30, 2015, CF Industries' 12-month rolling average recordable
incidence rate was 0.89 incidents per 200,000 work-hours, the company's
lowest level ever. The most recently available three-year average for
the company's broad set of peer chemical companies is 2.8 incidents per
200,000 work hours.
“The safety of our employees, contractors and the communities in which
we do business is our first thought each day," said Mr. Will. "We remain
committed to building on the progress we've made and ensuring that each
of us lives our culture of safety."
Balance Sheet and Cash Flow Items
As of June 30, 2015, CF Industries had total liquidity of $2.3 billion
including its undrawn revolving credit facility. Total long-term debt
was $4.6 billion.
Total cash capital expenditures during the quarter were $587.1 million.
Of this, $453.7 million was related to the capacity expansion projects,
bringing project announcement-to-date cash expenditures to $2.6 billion.
In addition to the year-to-date cash expenditures, the company has
accrued payables related to the expansion projects of $406.5 million.
Capital expenditures during the second quarter for sustaining items
totaled approximately $133.4 million.
During the second quarter, the company repurchased 4.5 million shares
for approximately $268.1 million. Subsequent to the quarter, the company
repurchased about 358,000 shares for $22.5 million, bringing the
company's shares outstanding down to 233.0 million shares as of July 31,
2015. As a result of the share repurchases and high-return investments
in production growth, the company's nitrogen capacity per thousand
shares has increased by 189 percent, from approximately 11 tons prior to
the acquisition of Terra Industries to above 30 tons today.
Dividend Payment
On July 23, 2015, CF Industries’ Board of Directors declared a quarterly
dividend of $0.30 per common share. The dividend will be paid on August
31, 2015, to stockholders of record as of August 14, 2015.
Conference Call
CF Industries will hold a conference call to discuss these second
quarter and year-to-date results at 8:30 a.m. ET on Thursday, August 6,
2015. Investors can access the call and find dial-in information on the
Investor Relations section of the company’s website at www.cfindustries.com.
About CF Industries Holdings, Inc.
CF Industries Holdings, Inc., headquartered in Deerfield, Illinois,
through its subsidiaries is a global leader in the manufacturing and
distribution of nitrogen products, serving both agricultural and
industrial customers. CF Industries operates world-class nitrogen
manufacturing complexes in the central United States, Canada and the
United Kingdom, and distributes plant nutrients through a system of
terminals, warehouses, and associated transportation equipment located
primarily in the Midwestern United States. The company also owns a 50
percent interest in an ammonia facility in The Republic of Trinidad and
Tobago. CF Industries routinely posts investor announcements and
additional information on the company’s website at www.cfindustries.com
and encourages those interested in the company to check there frequently.
Note Regarding Non-GAAP Financial Measures
The company reports its financial results in accordance with U.S.
generally accepted accounting principles (GAAP). Management believes
that EBITDA, a non-GAAP financial measure, provides additional
meaningful information regarding the company's performance and financial
strength. Non-GAAP financial measures should be viewed in addition to,
and not as an alternative for, the company's reported results prepared
in accordance with GAAP. In addition, because not all companies use
identical calculations, EBITDA included in this release may not be
comparable to similarly titled measures of other companies.
Reconciliations of EBITDA to GAAP are provided in the tables
accompanying this release under “CF Industries Holdings, Inc.-Selected
Financial Information-Non-GAAP Disclosure Items.”
Safe Harbor Statement
All statements in this communication, other than those relating to
historical facts, are “forward-looking statements.” These
forward-looking statements are not guarantees of future performance and
are subject to a number of assumptions, risks and uncertainties, many of
which are beyond our control, which could cause actual results to differ
materially from such statements. These statements include, but are not
limited to, statements about future strategic plans; and statements
about future financial and operating results. Important factors that
could cause actual results to differ materially from our expectations
include, among others: the volatility of natural gas prices in North
America and the United Kingdom; the cyclical nature of our business and
the agricultural sector; the global commodity nature of our fertilizer
products, the impact of global supply and demand on our selling prices,
and the intense global competition from other fertilizer producers;
conditions in the U.S. and U.K. agricultural industry; difficulties in
securing the supply and delivery of raw materials, increases in their
costs or delays or interruptions in their delivery; reliance on third
party providers of transportation services and equipment; the
significant risks and hazards involved in producing and handling our
products against which we may not be fully insured; risks associated
with cyber security; weather conditions; our ability to complete our
production capacity expansion projects on schedule as planned and on
budget or at all; an inability to achieve, or delay in achieving, the
expected benefits of the GrowHow transaction as contemplated; risks
associated with other expansions of our business, including
unanticipated adverse consequences and the significant resources that
could be required; potential liabilities and expenditures related to
environmental and health and safety laws and regulations; our potential
inability to obtain or maintain required permits and governmental
approvals or to meet financial assurance requirements from governmental
authorities; future regulatory restrictions and requirements related to
greenhouse gas emissions; the seasonality of the fertilizer business;
the impact of changing market conditions on our forward sales programs;
risks involving derivatives and the effectiveness of our risk
measurement and hedging activities; our reliance on a limited number of
key facilities; risks associated with joint ventures; acts of terrorism
and regulations to combat terrorism; risks associated with international
operations; losses on our investments in securities; deterioration of
global market and economic conditions; and our ability to manage our
indebtedness. More detailed information about factors that may affect
our performance may be found in our filings with the Securities and
Exchange Commission, including our most recent periodic reports filed on
Form 10-K and Form 10-Q, which are available in the Investor Relations
section of the CF Industries website. Forward-looking statements are
given only as of the date of this release and we disclaim any obligation
to update or revise the forward-looking statements, whether as a result
of new information, future events or otherwise, except as required by
law.
|
|
|
|
|
|
|
CF INDUSTRIES HOLDINGS, INC.
|
|
SELECTED FINANCIAL INFORMATION
|
|
RESULTS OF OPERATIONS
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
Six months ended
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
(in millions, except per share amounts)
|
|
Net sales
|
|
$
|
1,311.5
|
|
|
$
|
1,472.7
|
|
|
$
|
2,265.1
|
|
|
$
|
2,605.3
|
|
|
Cost of sales
|
|
625.6
|
|
|
882.4
|
|
|
1,163.4
|
|
|
1,572.2
|
|
|
Gross margin
|
|
685.9
|
|
|
590.3
|
|
|
1,101.7
|
|
|
1,033.1
|
|
|
Selling, general and administrative expenses
|
|
37.9
|
|
|
39.5
|
|
|
78.0
|
|
|
81.2
|
|
|
Other operating—net
|
|
22.4
|
|
|
21.6
|
|
|
40.6
|
|
|
15.8
|
|
|
Total other operating costs and expenses
|
|
60.3
|
|
|
61.1
|
|
|
118.6
|
|
|
97.0
|
|
|
Gain on sale of phosphate business
|
|
—
|
|
|
—
|
|
|
—
|
|
|
747.1
|
|
|
Equity in earnings of operating affiliates
|
|
4.7
|
|
|
2.1
|
|
|
14.4
|
|
|
17.9
|
|
|
Operating earnings
|
|
630.3
|
|
|
531.3
|
|
|
997.5
|
|
|
1,701.1
|
|
|
Interest expense
|
|
29.0
|
|
|
50.7
|
|
|
62.9
|
|
|
90.7
|
|
|
Interest income
|
|
(0.2
|
)
|
|
(0.3
|
)
|
|
(0.6
|
)
|
|
(0.5
|
)
|
|
Other non-operating—net
|
|
0.5
|
|
|
0.7
|
|
|
0.5
|
|
|
0.6
|
|
|
Earnings before income taxes and equity in (losses) earnings of
non-operating affiliates
|
|
601.0
|
|
|
480.2
|
|
|
934.7
|
|
|
1,610.3
|
|
|
Income tax provision
|
|
200.7
|
|
|
157.2
|
|
|
313.4
|
|
|
570.4
|
|
|
Equity in (losses) earnings of non-operating affiliates—net of taxes
|
|
(35.5
|
)
|
|
1.7
|
|
|
(20.6
|
)
|
|
5.2
|
|
|
Net earnings
|
|
364.8
|
|
|
324.7
|
|
|
600.7
|
|
|
1,045.1
|
|
|
Less: Net earnings attributable to noncontrolling interest
|
|
12.9
|
|
|
12.1
|
|
|
18.2
|
|
|
24.0
|
|
|
Net earnings attributable to common stockholders
|
|
$
|
351.9
|
|
|
$
|
312.6
|
|
|
$
|
582.5
|
|
|
$
|
1,021.1
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per share attributable to common stockholders(1):
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.50
|
|
|
$
|
1.22
|
|
|
$
|
2.45
|
|
|
$
|
3.86
|
|
|
Diluted
|
|
$
|
1.49
|
|
|
$
|
1.22
|
|
|
$
|
2.44
|
|
|
$
|
3.85
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding(1):
|
|
|
|
|
|
|
|
|
|
Basic
|
|
235.2
|
|
|
255.3
|
|
|
237.4
|
|
|
264.5
|
|
|
Diluted
|
|
236.1
|
|
|
256.0
|
|
|
238.3
|
|
|
265.3
|
|
_______________________________________________________________________________
|
(1)
|
|
On June 17, 2015, CF Industries common stock split 5 for 1. The
share and per share amounts for all prior periods have been
restated to reflect the stock split.
|
|
|
|
|
|
|
|
|
|
|
|
CF INDUSTRIES HOLDINGS, INC.
|
|
SELECTED FINANCIAL INFORMATION
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
June 30,
|
|
December 31,
|
|
|
|
2015
|
|
2014
|
|
|
|
(in millions)
|
|
Assets
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
809.9
|
|
|
$
|
1,996.6
|
|
Restricted cash
|
|
54.0
|
|
|
86.1
|
|
Accounts receivable—net
|
|
194.9
|
|
|
191.5
|
|
Inventories
|
|
205.3
|
|
|
202.9
|
|
Deferred income taxes
|
|
53.8
|
|
|
84.0
|
|
Prepaid income taxes
|
|
14.7
|
|
|
34.8
|
|
Other current assets
|
|
33.8
|
|
|
18.6
|
|
Total current assets
|
|
1,366.4
|
|
|
2,614.5
|
|
Property, plant and equipment—net
|
|
6,465.6
|
|
|
5,525.8
|
|
Investments in and advances to affiliates
|
|
808.7
|
|
|
861.5
|
|
Goodwill
|
|
2,090.8
|
|
|
2,092.8
|
|
Other assets
|
|
266.9
|
|
|
243.6
|
|
Total assets
|
|
$
|
10,998.4
|
|
|
$
|
11,338.2
|
|
|
|
|
|
|
|
Liabilities and Equity
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable and accrued expenses
|
|
$
|
701.2
|
|
|
$
|
589.9
|
|
Income taxes payable
|
|
12.4
|
|
|
16.0
|
|
Customer advances
|
|
17.3
|
|
|
325.4
|
|
Other current liabilities
|
|
22.6
|
|
|
48.4
|
|
Total current liabilities
|
|
753.5
|
|
|
979.7
|
|
Long-term debt
|
|
4,592.6
|
|
|
4,592.5
|
|
Deferred income taxes
|
|
776.5
|
|
|
818.6
|
|
Other liabilities
|
|
400.0
|
|
|
374.9
|
|
Equity:
|
|
|
|
|
|
Stockholders' equity
|
|
4,115.9
|
|
|
4,209.7
|
|
Noncontrolling interest
|
|
359.9
|
|
|
362.8
|
|
Total equity
|
|
4,475.8
|
|
|
4,572.5
|
|
Total liabilities and equity
|
|
$
|
10,998.4
|
|
|
$
|
11,338.2
|
|
|
|
|
|
|
|
CF INDUSTRIES HOLDINGS, INC.
|
|
SELECTED FINANCIAL INFORMATION
|
|
STATEMENTS OF CASH FLOWS
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
Six months ended
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
(in millions)
|
|
Operating Activities:
|
|
|
|
|
|
|
|
|
|
Net earnings
|
|
$
|
364.8
|
|
|
$
|
324.7
|
|
|
$
|
600.7
|
|
|
$
|
1,045.1
|
|
|
Adjustments to reconcile net earnings to net cash (used in) provided
by operating activities:
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
103.9
|
|
|
97.8
|
|
|
219.3
|
|
|
203.1
|
|
|
Deferred income taxes
|
|
(6.0
|
)
|
|
(16.0
|
)
|
|
(5.7
|
)
|
|
1.1
|
|
|
Stock-based compensation expense
|
|
4.2
|
|
|
6.2
|
|
|
8.1
|
|
|
10.0
|
|
|
Excess tax benefit from stock-based compensation
|
|
(0.3
|
)
|
|
(0.7
|
)
|
|
(1.8
|
)
|
|
(5.2
|
)
|
|
Unrealized (gain) loss on derivatives
|
|
(32.6
|
)
|
|
39.5
|
|
|
(43.2
|
)
|
|
61.4
|
|
|
Loss on sale of equity method investments
|
|
42.8
|
|
|
—
|
|
|
42.8
|
|
|
—
|
|
|
Gain on sale of phosphate business
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(747.1
|
)
|
|
Loss on disposal of property, plant and equipment
|
|
8.1
|
|
|
0.9
|
|
|
13.6
|
|
|
1.0
|
|
|
Undistributed earnings of affiliates—net of taxes
|
|
2.2
|
|
|
(3.7
|
)
|
|
(16.2
|
)
|
|
(15.1
|
)
|
|
Changes in:
|
|
|
|
|
|
|
|
|
|
Accounts receivable—net
|
|
(27.8
|
)
|
|
(44.3
|
)
|
|
(3.7
|
)
|
|
(12.1
|
)
|
|
Inventories
|
|
60.0
|
|
|
176.3
|
|
|
(8.0
|
)
|
|
64.0
|
|
|
Accrued and prepaid income taxes
|
|
(53.2
|
)
|
|
(257.3
|
)
|
|
30.4
|
|
|
22.6
|
|
|
Accounts payable and accrued expenses
|
|
(22.6
|
)
|
|
(97.8
|
)
|
|
(33.2
|
)
|
|
(30.4
|
)
|
|
Customer advances
|
|
(477.9
|
)
|
|
(414.0
|
)
|
|
(308.1
|
)
|
|
(57.2
|
)
|
|
Other—net
|
|
2.3
|
|
|
(6.3
|
)
|
|
3.8
|
|
|
14.1
|
|
|
Net cash (used in) provided by operating activities
|
|
(32.1
|
)
|
|
(194.7
|
)
|
|
498.8
|
|
|
555.3
|
|
|
Investing Activities:
|
|
|
|
|
|
|
|
|
|
Additions to property, plant and equipment
|
|
(587.1
|
)
|
|
(292.6
|
)
|
|
(1,031.9
|
)
|
|
(685.0
|
)
|
|
Proceeds from sale of property, plant and equipment
|
|
4.7
|
|
|
4.6
|
|
|
8.0
|
|
|
5.9
|
|
|
Proceeds from sale of equity method investment
|
|
12.8
|
|
|
—
|
|
|
12.8
|
|
|
—
|
|
|
Proceeds from sale of phosphate business
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,353.6
|
|
|
Deposits to restricted cash funds
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(505.0
|
)
|
|
Withdrawals from restricted cash funds
|
|
9.3
|
|
|
8.3
|
|
|
32.1
|
|
|
14.0
|
|
|
Other—net
|
|
(11.5
|
)
|
|
11.0
|
|
|
(22.4
|
)
|
|
16.8
|
|
|
Net cash (used in) provided by investing activities
|
|
(571.8
|
)
|
|
(268.7
|
)
|
|
(1,001.4
|
)
|
|
200.3
|
|
|
Financing Activities:
|
|
|
|
|
|
|
|
|
|
Proceeds from long-term borrowings
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,494.2
|
|
|
Financing fees
|
|
—
|
|
|
(0.3
|
)
|
|
(2.0
|
)
|
|
(16.0
|
)
|
|
Purchases of treasury stock
|
|
(286.9
|
)
|
|
(809.4
|
)
|
|
(523.1
|
)
|
|
(1,591.2
|
)
|
|
Dividends paid on common stock
|
|
(70.7
|
)
|
|
(52.0
|
)
|
|
(142.5
|
)
|
|
(107.2
|
)
|
|
Distributions to noncontrolling interest
|
|
(9.6
|
)
|
|
(13.9
|
)
|
|
(21.1
|
)
|
|
(23.5
|
)
|
|
Issuances of common stock under employee stock plans
|
|
1.7
|
|
|
0.3
|
|
|
7.4
|
|
|
9.7
|
|
|
Excess tax benefit from stock-based compensation
|
|
0.3
|
|
|
0.7
|
|
|
1.8
|
|
|
5.2
|
|
|
Other—net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(43.0
|
)
|
|
Net cash used in financing activities
|
|
(365.2
|
)
|
|
(874.6
|
)
|
|
(679.5
|
)
|
|
(271.8
|
)
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
0.2
|
|
|
1.9
|
|
|
(4.6
|
)
|
|
(0.5
|
)
|
|
(Decrease) increase in cash and cash equivalents
|
|
(968.9
|
)
|
|
(1,336.1
|
)
|
|
(1,186.7
|
)
|
|
483.3
|
|
|
Cash and cash equivalents at beginning of period
|
|
1,778.8
|
|
|
3,530.2
|
|
|
1,996.6
|
|
|
1,710.8
|
|
|
Cash and cash equivalents at end of period
|
|
$
|
809.9
|
|
|
$
|
2,194.1
|
|
|
$
|
809.9
|
|
|
$
|
2,194.1
|
|
|
|
|
|
|
|
|
CF INDUSTRIES HOLDINGS, INC.
|
|
SELECTED FINANCIAL INFORMATION
|
|
SEGMENT DATA
|
|
|
|
Phosphate Segment
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
Six months ended
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
(in millions, except as noted)
|
|
Net sales
|
|
$
|
—
|
|
|
$
|
23.3
|
|
|
$
|
—
|
|
|
$
|
168.4
|
|
|
Cost of sales
|
|
—
|
|
|
21.7
|
|
|
—
|
|
|
158.3
|
|
|
Gross margin
|
|
$
|
—
|
|
|
$
|
1.6
|
|
|
$
|
—
|
|
|
$
|
10.1
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin percentage
|
|
—
|
%
|
|
6.9
|
%
|
|
—
|
%
|
|
6.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Sales volume by product tons (000s)(1)
|
|
—
|
|
|
59
|
|
|
—
|
|
|
487
|
|
|
|
|
|
|
|
|
|
|
|
|
Average selling price per product ton
|
|
$
|
—
|
|
|
$
|
395
|
|
|
$
|
—
|
|
|
$
|
346
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin per product ton
|
|
$
|
—
|
|
|
$
|
27
|
|
|
$
|
—
|
|
|
$
|
21
|
|
_______________________________________________________________________________
|
(1)
|
|
Represents DAP and MAP product sales.
|
|
|
|
|
|
CF INDUSTRIES HOLDINGS, INC.
|
|
SELECTED FINANCIAL INFORMATION
|
|
NON-GAAP DISCLOSURE ITEMS
|
Reconciliation of net earnings to EBITDA:
EBITDA is defined as net earnings attributable to common stockholders
plus interest expense (income)-net, income taxes, and depreciation and
amortization. Other adjustments include the elimination of loan fee
amortization that is included in both interest and amortization, and the
portion of depreciation that is included in noncontrolling interest. The
company has presented EBITDA because management uses the measure to
track performance and believes that it is frequently used by securities
analysts, investors and other interested parties in the evaluation of
companies in the fertilizer industry.
|
|
|
|
|
|
|
|
|
Three months ended
|
|
Six months ended
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
(in millions)
|
|
Net earnings attributable to common stockholders
|
|
$
|
351.9
|
|
|
$
|
312.6
|
|
|
$
|
582.5
|
|
|
$
|
1,021.1
|
|
|
Interest expense (income)—net
|
|
28.8
|
|
|
50.4
|
|
|
62.3
|
|
|
90.2
|
|
|
Income taxes(1)
|
|
189.8
|
|
|
157.2
|
|
|
302.5
|
|
|
570.4
|
|
|
Depreciation and amortization
|
|
103.9
|
|
|
97.8
|
|
|
219.3
|
|
|
203.1
|
|
|
Less: other adjustments
|
|
(4.9
|
)
|
|
(5.0
|
)
|
|
(11.0
|
)
|
|
(12.1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$
|
669.5
|
|
|
$
|
613.0
|
|
|
$
|
1,155.6
|
|
|
$
|
1,872.7
|
|
_______________________________________________________________________________
|
(1)
|
|
Includes the tax benefit on loss on sale of non-operating equity
method investment for $10.9 million for both the three and six
months ended June 30, 2015, respectively.
|
|
|
|
|
Notes:
Net earnings and EBITDA for the three months ended June 30, 2015 include
a $18.4 million unrealized net mark-to-market gain on natural gas
derivatives, $4.5 million gain on foreign currency derivatives,
$42.8 million loss on sale of equity method investments and
$12.6 million of expansion project expenses.
Net earnings and EBITDA for the six months ended June 30, 2015 include a
$47.1 million unrealized net mark-to-market gain on natural gas
derivatives, $18.7 million loss on foreign currency derivatives,
$42.8 million loss on sale of equity method investments and
$21.7 million of expansion project expenses.
Net earnings and EBITDA for the three months ended June 30, 2014 include
a $28.6 million unrealized net mark-to-market loss on natural gas
derivatives, $1.1 million loss on foreign currency derivatives and
$7.0 million of expansion project expenses.
Net earnings for the six months ended June 30, 2014 includes a
$461.0 million net of tax gain on the sale of the phosphate business.
EBITDA for the six months ended June 30, 2014 includes a $747.1 million
pre-tax gain on sale of the phosphate business.
Net earnings and EBITDA for the six months ended June 30, 2014 include a
$51.2 million unrealized net mark-to-market loss on natural gas
derivatives, $0.2 million loss on foreign currency derivatives and
$15.1 million of expansion project expenses.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150805006782/en/
Copyright Business Wire 2015