MOSAIC CO
0001285785
false
0001285785
2024-05-01
2024-05-01
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
May 1, 2024
THE MOSAIC COMPANY
(Exact name of registrant as specified in its charter)
DE 001-32327 20-1026454
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
101 East Kennedy Blvd. 33602
Suite 2500
Tampa, Florida
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (
800
)
918-8270
Not applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of
the following provisions (see General Instruction A.2. below):
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act
Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock, par value $0.01 per share MOS New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act
of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition
period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the
Exchange Act.
..
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Item 2.02. Results of Operations and Financial Condition.
The following information is being "furnished" in accordance with General
Instruction B.2. of Form 8-K and shall not be deemed "filed" for purposes of
Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange
Act"), or otherwise subject to the liabilities of that section, nor shall it
be deemed to be incorporated by reference in any filing under the Securities
Act of 1933, as amended (the "Securities Act"), or the Exchange Act, except as
expressly set forth by specific reference in such filing:
Furnished herewith as Exhibit 99.1 and incorporated by reference herein is the
text of The Mosaic Company's ("Mosaic," and Mosaic and its subsidiaries,
individually or in any combination, "we," "us" or "our") announcement
regarding its earnings and results of operations for the quarter ended March
31, 2024, as presented in a press release issued on May 1, 2024.
Furnished herewith as Exhibit 99.2 and incorporated by reference herein is
certain performance data for the period ended March 31, 2024 to be published
on Mosaic's website.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
Reference is made to the Exhibit Index hereto with respect to the exhibits
furnished herewith. The following exhibits are being "furnished" in accordance
with General Instruction B.2. of Form 8-K and shall not be deemed "filed" for
purposes of Section 18 of the Exchange Act, or otherwise subject to the
liabilities of that section, nor shall they be deemed to be incorporated by
reference in any filing under the Securities Act or the Exchange Act, except
as expressly set forth by specific reference in such filing.
Exhibit No. Description
99.1 Press release, dated May 1, 2024,
of The Mosaic Company regarding its
earnings and results of operations
for the quarter ended March 31, 2024
99.2 Performance data for the period ended March 31, 2024
104 Cover Page Interactive Data File, formatted in Inline XBRL
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
THE MOSAIC COMPANY
Date: May 1, 2024 By: /s/ Philip E. Bauer
Name: Philip E. Bauer
Title: Senior Vice President, General Counsel
and Corporate Secretary
Exhibit 99.1
The Mosaic Company
101 E. Kennedy Blvd., Suite 2500
Tampa, FL 33602
www.mosaicco.com
FOR IMMEDIATE RELEASE
Investors Jason Tremblay Media
Joan Tong 813-775-4226 Ben Pratt
863-640-0826 jason.tremblay@mosaicco.com 813-775-4206
joan.tong@mosaicco.com benjamin.pratt@mosaicco.com
THE MOSAIC COMPANY REPORTS FIRST QUARTER 2024 RESULTS
.
First quarter net earnings of $45 million, Adjusted EBITDA
(1)
of $576 million
.
Announced transaction with Ma'aden valuing Mosaic stake at approximately
$1.5 billion
.
Completed 800,000 tonne MicroEssentials capacity conversion
.
Riverview facility back to full capacity
.
Returned 88% of free cash flow to shareholders
TAMPA, FL, May 1, 2024 - The Mosaic Company (NYSE: MOS), reported net earnings
of $45 million, or $0.14 per diluted share, for the first quarter of 2024.
Adjusted EPS
(1)
was $0.65 and Adjusted EBITDA
(1)
was $576 million.
"Mosaic delivered a solid first quarter," said President and CEO Bruce Bodine.
"For the remainder of the year, we will focus on execution and the completion
of previously announced low capital intensity initiatives that build on our
strengths."
First Quarter Results Highlights:
.
First quarter revenues totaled $2.7 billion, down 26 percent from the year ago
period, reflecting the impact of lower selling prices. The gross margin rate
in the first quarter was 14.9 percent, down from 18.6 percent in the year ago
period.
.
Net earnings in the first quarter totaled $45 million, compared with $435
million in the year ago period. Current period results reflected the after-tax
impact of notable items totaling $165 million, mainly from a foreign currency
transaction loss, an unrealized loss on derivatives, and an adjustment to
environmental reserves. Adjusted EBITDA
(1)
totaled $576 million, compared with $777 million in the first quarter of 2023.
Cash from operating activities totaled $(80) million and free cash flow
(1)
totaled $203 million. This compares to $149 million and $191 million,
respectively, in the year ago period.
.
Potash operating earnings were $198 million in the first quarter, compared to
$402 million last year. Adjusted EBITDA
(1)
totaled $281 million, compared to $474 million in the same period last year,
reflecting the impact of lower prices, partially offset by higher volume and
lower Canadian resource taxes.
.
Phosphate operating earnings were $40 million in the first quarter, compared
to $266 million in the prior year period. Adjusted EBITDA
(1)
totaled $277 million, compared to $382 million in the first quarter of 2023.
Segment results reflect the impact of lower prices, lower sales volume, a
higher mix of third party produced fertilizers, and higher planned turnaround
costs, partially offset by lower raw material costs.
.
Mosaic Fertilizantes reported operating earnings of $42 million in the first
quarter, compared to $(32) million in the prior year period. Adjusted EBITDA
(1)
totaled $83 million during the quarter, increasing from $3 million in the
first quarter of 2023, reflecting higher distribution margins, partially
offset by lower sales volume.
(1)
See "Non-GAAP Financial Measures" for additional information and reconciliation.
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Portfolio Highlights:
.
In April, Mosaic announced a transaction with Ma'aden to receive approximately
$1.5 billion i
n Ma'aden common shares in exchange of Mosaic's 25% share of the Wa'ad Al
Shamal Phosphate Company. When completed, this transaction will provide a
defined value for Mosaic's investment and improve Mosaic's capital flexibility
over time.
.
The Colonsay potash mine was curtailed in March and will remain idle until
market conditions improve.
.
Mosaic completed repairs caused by a fire at its Riverview facility in late
April.
Capital Allocation Highlights:
.
We are executing high-return and low-capital-intensity projects
An 800,000 tonne MicroEssentials capacity conversion is completed and
production is expected to commence in May;
The Esterhazy Hydrofloat project, which will add 400,000 tonnes in milling
capacity, is on track to be completed by mid-2025;
A one million tonne blending facility in Palmeirante, Brazil is on track to be
completed in 2025
.
Mosaic's cost reduction plan announced last year is progressing well. We
expect to drive $150 million in run rate cost reductions by the end of 2025.
.
Mosaic has returned $178 million of capital to shareholders through the first
quarter of 2024, including share repurchases totaling
$108 million
.
First Quarter Segment Results
Potash Results Q1 2024 Q1 2023
Sales Volumes million tonnes* 2.2 1.9
MOP Selling Price $241 $421
(2)
Gross Margin (GAAP) per tonne $98 $216
Adjusted Gross Margin (non-GAAP) per tonne $98 $216
(1)
Operating Earnings - millions $198 $402
Segment Adjusted EBITDA $281 $474
(1)
- millions
*Tonnes = finished product tonnes
Net sales in the Potash segment totaled $643 million, down from $907 million
one year ago. Gross margin was $212 million compared to $413 million in the
first quarter of 2023, driven by lower average selling prices. Gross margin
per tonne was $98 compared to $216 in the prior-year period.
Total potash production was 2.3 million tonnes, up from 1.9 million tonnes in
the prior year period. Sales volumes totaled 2.2 million tonnes, up from 1.9
million tonnes in the prior year quarter.
Sales volumes in the second quarter are expected to be in the range of 2.2-2.4
million tonnes. We expect realized mine-gate MOP prices in the range of
$210-$250 per tonne.
(1)
See "Non-GAAP Financial Measures" for additional information and reconciliation.
(2)
Average MOP Selling Price (fob mine)
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Phosphate Results Q1 2024 Q1 2023
Sales Volumes million tonnes* 1.6 1.8
DAP Selling Price $598 $660
(4)
Gross Margin (GAAP) per tonne $97 $141
Adjusted Gross Margin (non-GAAP) per tonne $97 $141
(1)
Operating Earnings - millions $40 $266
Segment Adjusted EBITDA $277 $382
(1)
- millions
*Tonnes = finished product tonnes
Net sales in the Phosphate segment were $1.2 billion, down from $1.4 billion
in the prior year period. Gross margin was $159 million, compared to $259
million for the same period a year ago. Higher conversion costs, a higher mix
of low margin third party produced finished products and higher turnaround
costs impacted our profitability. Gross margin per tonne was $97 compared to
$141 in the prior-year period.
Production of finished phosphates totaled 1.6 million tonnes, down 14 percent
year-over-year, and sales volumes totaled 1.6 million tonnes, down from last
year. Production volumes during the quarter were impacted by higher planned
maintenance turnaround activities.
Mosaic expects sales volumes in the second quarter to be 1.6-1.8 million
tonnes. DAP prices at the plant are expected to be in the range of $530-$580
per tonne. Second quarter realized stripping margins are expected to moderate
from the first quarter but remain above historical levels. Conversion and
turnaround costs will remain elevated in the second quarter as Mosaic
continues to work to increase production volume.
Mosaic Fertilizantes Results Q1 2024 Q1 2023
Sales Volumes million tonnes* 1.7 2.1
Finished Product Selling Price $517 $646
Gross Margin (GAAP) per tonne $44 $(1)
Adjusted Gross Margin (non GAAP) per tonne $43 $(1)
(1)
Operating Earnings - millions $42 $(32)
Segment Adjusted EBITDA $83 $3
(1)
- millions
*Tonnes = finished product tonnes
Net sales in the Mosaic Fertilizantes segment were $886 million, down from
$1.3 billion in the prior year period due to lower pricing. Gross margin was
$75 million, compared to $(1) million for the same period a year ago.
Our distribution business profitability improved significantly from the same
period in the prior year as high priced inventory destocking was completed in
the first half of 2023. Production margin per tonne also improved from the
same period of 2023, driven by strong co-product sales and margins.
We expect distribution margins to be in line with the normal historical range.
(1)
See "Non-GAAP Financial Measures" for additional information and reconciliation.
(4)
Average DAP Selling Price (fob plant)
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Other
Selling, general, and administrative costs (SG&A) were $107 million, down from
$128 million in the year-ago
period as cost reduction plans are progressing well. The
effective tax rate during the quarter was 24.6 percent.
Mosaic recognized earnings from equity investments of $38 million.
Market Outlook
Agricultural fundamentals remain constructive, with grains and oilseeds
stock-to-use ratios expected to remain pressured for the foreseeable future.
While corn and soybean fundamentals and prices have softened recently, growers
around the world remain profitable. Constructive long-term agriculture
fundamentals and favorable economics incentivize growers to maximize yields.
In 2024, the El Nino weather pattern is expected to shift to La Nina, creating
a favorable backdrop in Southeast Asia, India and Brazil. Certain parts of the
world have gone through two years of under-application of fertilizers, and
growers are seeking to replenish soil nutrients.
For fertilizer demand, as North America is transitioning out of a robust
spring planting season, the rest of the world is set to pick up in the coming
months. In Brazil, despite the credit and liquidity challenges in the region,
low inventory and a favorable demand outlook sets the stage for peak or near
peak fertilizer shipments in 2024.
Global potash supply constraints are likely to continue to abate this year as
we see higher exports from Belarus and Russia. However, we also expect strong
palm oil fundamentals to drive demand recovery in South East Asia.
Despite the temporary resumption of China phosphate exports, the favorable
overall picture has not changed as domestic agriculture and industrial demand
will continue to be prioritized over fertilizer exports in the long term.
These factors suggest the global potash market is balanced and the phosphate
market will remain tight in 2024.
2024 Expectations and Key Assumptions
The Company provides the following modeling assumptions for the full year 2024:
Modeling Assumptions Full Year 2024
Total Capital Expenditures $1.1 - 1.2 billion
Depreciation, Depletion & Amortization $960 - $990 million
Selling, General, and Administrative Expense $470 - $500 million
Net Interest Expense $160 - $180 million
Effective tax rate High 20's %
Cash tax rate Mid 20's %
Sensitivities Table
The Company provides the following sensitivities to price and foreign exchange
rates to help investors anticipate the potential impact of movements in these
factors. These sensitivities are based on 2023 actual realized pricing and
sales volumes.
Sensitivity Full year adj. EBITDA impact 2023 Actual
(1)
Average MOP Price / tonne (fob mine) $10/mt price change = $60 million $308
(6) (5)
Average DAP Price / tonne (fob plant) $10/mt price change = $70 million $573
(6)
Average BRL / USD 0.10 change, unhedged = $10 million 5.00
(7)
(1)
See "Non-GAAP Financial Measures" for additional information and reconciliation.
(5)
Includes impact of Canadian Resource Tax
(6)
Approximately 20% of DAP price sensitivity impact is expected to be in the
Mosaic Fertilizantes segment.; approximately 5% of the MOP price sensitivity
impact is expected to be in the Mosaic Fertilizantes segment.
(7)
The company hedged about 50 percent of the annual sensitivity. Over longer
periods of time, inflation is expected to offset a portion of currency
benefits.
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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 has posted prepared comments and related slides on its website,
www.mosaicco.com/investors, concurrently with the posting of this release and
performance data. In addition, the company will provide access to a fireside
chat addressing questions on the quarter, current market conditions, and other
topics on Thursday, May 2, 2024, at 11 am Eastern. The fireside chat will be
available both on the website and via telephone at the following number:
412-902-6506, Conference ID: 1683304
. All earnings-related material, including audio, 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 may include,
but are not limited to, statements about proposed or pending 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:
risks related to the anticipated value of the Ma'aden shares to be issued in
the proposed transaction at transaction announcement and at closing, the
expected timing and likelihood of completion of the pending Ma'aden
transaction, including the inability to receive the required approval by
Ma'aden shareholders and other approvals, including potential regulatory
approvals, necessary to complete the transaction; the occurrence of any event,
change or other circumstances that could give rise to the termination of the
applicable agreement; the risk that there may be a material adverse change
with respect to the financial position, performance, operations or prospects
of Ma'aden and MWSPC;
p
olitical and economic instability and changes in government policies in
countries in which we have operations; 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
MWSPC, the future success of current plans for MWSPC and any future changes in
those plans;difficulties with realization of the benefits of our 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; 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 potash 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. The declarations and payment of future dividends
and special dividends remain at the discretion of the Board of Directors.
###
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Non-GAAP Financial Measures
This press release includes the presentation and discussion of non-GAAP
diluted net earnings per share guidance, or adjusted EPS, and adjusted EBITDA,
adjusted gross margin referred to as non-GAAP financial measures and free cash
flow. 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 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. Free cash flow is defined as net
cash provided by operating activities less capital expenditures, and adjusted
for changes in working capital financing. Management believes that these
adjusted measures provide securities analysts, investors, management and
others with useful supplemental information regarding our performance by
excluding and/or including 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. Reconciliations for
current and historical periods beginning with the quarter ended June 30, 2022,
for consolidated adjusted EPS and adjusted EBITDA, as well as segment adjusted
EBITDA and adjusted gross margin per tonne are provided in the Selected
Calendar Quarter Financial Information performance data for the related
periods. This information is being furnished under Exhibit 99.2 of the Form
8-K and available on our website at www.mosaicco.com in the "Financial
Information - Quarterly Earnings" section under the "Investors" tab
.
6
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For the three months ended March 31, 2024, the company reported the following
notable items which, combined, negatively impacted earnings per share by
$(0.51):
Amount Tax effect EPS impact
Description Segment Line item (in (in (per share)
millions) millions)
Foreign currency Consolidated Foreign currency $ (100) $ 28 $ (0.22)
transaction gain (loss) transaction gain (loss)
Unrealized gain Corporate Cost of (31) 8 (0.07)
(loss) on derivatives and Other goods sold
Closed and indefinitely Phosphate Other operating (11) 3 (0.03)
idled facility costs income (expense)
FX functional Mosaic Cost of 1 - -
currency Fertilizantes goods sold
Realized gain (loss) on Phosphate Other non-operating 4 (1) 0.01
RCRA Trust Securities income (expense)
ARO Phosphate Other operating (14) 4 (0.03)
Adjustment income (expense)
Environmental Phosphate Other operating (77) 21 (0.17)
reserves income (expense)
Total Notable $ (228) $ 63 $ (0.51)
Items
For the three months ended March 31, 2023, the company reported the following
notable items which, combined, positively impacted earnings per share by $0.14:
Amount Tax effect EPS impact
Description Segment Line item (in (in (per share)
millions) millions)
Foreign currency Consolidated Foreign currency $ 51 $ (12) $ 0.11
transaction gain (loss) transaction gain (loss)
Unrealized gain Corporate Cost of (1) - -
(loss) on derivatives and Other goods sold
Closed and indefinitely Phosphate Other operating (12) 3 (0.03)
idled facility costs income (expense)
Gain on sale of Phosphate Other operating 57 (14) 0.13
Streamsong Resort income (expense)
FX functional Mosaic Cost of - - -
currency Fertilizantes goods sold
Realized gain (loss) on Phosphate Other non-operating (8) 2 (0.02)
RCRA Trust Securities income (expense)
ARO Phosphate Other operating (20) 5 (0.04)
Adjustment income (expense)
Environmental Phosphate Other operating (6) 1 (0.01)
reserve income (expense)
Total Notable $ 61 $ (15) $ 0.14
Items
7
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Condensed Consolidated Statements of Earnings
(in millions, except per share amounts)
The Mosaic Company (unaudited)
Three months ended
March 31,
2024 2023
Net sales $ 2,679.4 $ 3,604.3
Cost of goods sold 2,280.2 2,933.9
Gross margin 399.2 670.4
Selling, general and administrative expenses 106.8 127.7
Other operating expense (income) 119.5 (1.9)
Operating earnings 172.9 544.6
Interest expense, net (48.0) (41.1)
Foreign currency transaction (loss) gain (100.3) 51.4
Other income (expense) 0.6 (8.9)
Earnings from consolidated companies before income taxes 25.2 546.0
Provision for income taxes 6.2 118.3
Earnings from consolidated companies 19.0 427.7
Equity in net earnings of nonconsolidated companies 37.5 31.3
Net earnings including noncontrolling interests 56.5 459.0
Less: Net earnings attributable to noncontrolling interests 11.3 24.2
Net earnings attributable to Mosaic $ 45.2 $ 434.8
Diluted net earnings per share attributable to Mosaic $ 0.14 $ 1.28
Diluted weighted average number of shares outstanding 323.5 338.7
8
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Condensed Consolidated Balance Sheets
(in millions, except per share amounts)
The Mosaic Company (unaudited)
March 31, 2024 December 31, 2023
Assets
Current assets:
Cash and cash $ 336.7 $ 348.8
equivalents
Receivables, net, 1,212.6 1,269.2
including affiliate
receivables of $118.3 and
$240.1, respectively
Inventories 2,603.0 2,523.2
Other current 502.9 603.8
assets
Total current 4,655.2 4,745.0
assets
Property, plant and 13,461.3 13,585.4
equipment, net of accumulated
depreciation of $10,061.7
and $9,914.1, respectively
Investments in 932.0 909.0
nonconsolidated
companies
Goodwill 1,117.8 1,138.6
Deferred 1,120.4 1,079.2
income taxes
Other assets 1,586.3 1,575.6
Total assets $ 22,873.0 $ 23,032.8
Liabilities and Equity
Current liabilities:
Short-term $ 1,203.7 $ 399.7
debt
Current maturities 128.7 130.1
of long-term debt
Structured 267.1 399.9
accounts
payable
arrangements
Accounts payable, 850.4 1,166.9
including affiliate
payables of $117.9 and
$245.2, respectively
Accrued 1,570.5 1,777.1
liabilities
Total current 4,020.4 3,873.7
liabilities
Long-term 3,221.7 3,231.6
debt, less
current maturities
Deferred 1,039.1 1,065.5
income taxes
Other noncurrent 2,428.0 2,429.2
liabilities
Equity:
Preferred Stock, $0.01 par value, - -
15,000,000 shares authorized, none
issued and outstanding as of March
31, 2024 and December 31, 2023
Common Stock, $0.01 par value, 1,000,000,000 shares 3.2 3.2
authorized, 394,563,599 shares issued and 321,392,799 shares
outstanding as of March 31, 2024, 393,875,241 shares issued
and 324,103,141 shares outstanding as of December 31, 2023
Capital in excess - -
of par value
Retained earnings 14,109.0 14,241.9
Accumulated other (2,093.3) (1,954.9)
comprehensive loss
Total Mosaic 12,018.9 12,290.2
stockholders'
equity
Noncontrolling 144.9 142.6
interests
Total equity 12,163.8 12,432.8
Total $ 22,873.0 $ 23,032.8
liabilities
and equity
9
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Condensed Consolidated Statements of Cash Flows
(in millions, except per share amounts)
The Mosaic Company (unaudited)
Three months ended
March 31,
2024 2023
Cash Flows from Operating Activities:
Net cash (used in) provided by operating activities $ (80.0) $ 149.0
Cash Flows from Investing Activities:
Capital expenditures (383.0) (321.5)
Purchases of available-for-sale securities - restricted (624.7) (604.6)
Proceeds from sale of available-for-sale securities - restricted 619.8 591.2
Proceeds from sale of business - 158.4
Acquisition of business - (41.0)
Other 0.1 (3.9)
Net cash used in investing activities (387.8) (221.4)
Cash Flows from Financing Activities:
Payments of short-term debt (4,596.2) (3,127.9)
Proceeds from issuance of short-term debt 4,900.4 3,356.5
Payments of inventory financing arrangement (200.3) -
Proceeds from inventory financing arrangement 701.2 400.8
Payments of structured accounts payable arrangements (226.1) (381.2)
Proceeds from structured accounts payable arrangements 90.9 169.8
Collections of transferred receivables 101.6 608.2
Payments of transferred receivables (100.6) (607.0)
Payments of long-term debt (15.4) (15.0)
Repurchases of stock (108.4) (456.0)
Cash dividends paid (69.7) (152.4)
Dividends paid to non-controlling interest (8.2) -
Other (11.3) (4.8)
Net cash provided by (used in) financing activities 457.9 (209.0)
Effect of exchange rate changes on cash (3.8) 4.3
Net change in cash, cash equivalents and restricted cash (13.7) (277.1)
Cash, cash equivalents and restricted cash - beginning of period 360.8 754.1
Cash, cash equivalents and restricted cash - end of period $ 347.1 $ 477.0
10
-------------------------------------------------------------------------------
Three months ended
March 31, 2024 March 31, 2023
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 $ 336.7 $ 464.8
equivalents
Restricted cash in 2.4 9.8
other current assets
Restricted cash 8.0 2.4
in other assets
Total cash, cash equivalents and restricted cash $ 347.1 $ 477.0
shown in the unaudited statements of cash flows
Reconciliation of Non-GAAP Financial Measures
Earnings Per Share Calculation
Three months ended March 31,
2024 2023
Net income attributable to Mosaic $ 45.2 $ 434.8
Basic weighted average number of shares outstanding 322.1 335.4
Dilutive impact of share-based awards 1.4 3.3
Diluted weighted average number of shares outstanding 323.5 338.7
Basic net income per share attributable to Mosaic $ 0.14 $ 1.30
Diluted net income per share attributable to Mosaic $ 0.14 $ 1.28
Notable items impact on net income per share attributable to Mosaic (0.51) 0.14
Adjusted diluted net income per share attributable to Mosaic $ 0.65 $ 1.14
Free Cash Flow
Three months ended March 31,
2024 2023
Net cash (used in) provided by operating activities $ (80) $ 149
Capital expenditures (383) (322)
Working capital financing 666 364
(a)
Free cash flow $ 203 $ 191
(a)
Includes net proceeds (payments) from inventory financing arrangements,
structured accounts payable arrangements and commercial paper borrowings.
11
-------------------------------------------------------------------------------
Adjusted EBITDA
Consolidated Three months
Earnings ended March 31,
(in millions)
2024 2023
Consolidated net earnings $ 45 $ 435
attributable to Mosaic
Less: Consolidated (48) (41)
interest expense, net
Plus: Consolidated depreciation, 241 220
depletion and amortization
Plus: Accretion 27 23
expense
Plus: Share-based 9 12
compensation expense
Plus: Consolidated 6 118
provision for income taxes
Less: Equity in net earnings of 22 6
nonconsolidated companies, net of dividends
Plus: Notable 222 (66)
items
Adjusted $ 576 $ 777
EBITDA
Three months ended
March 31, March 31,
Potash Earnings 2024 2023
(in millions)
Operating Earnings $ 198 $ 402
Plus: Depreciation, Depletion and Amortization 82 70
Plus: Accretion Expense 2 2
Plus: Foreign Exchange Gain (Loss) (31) 3
Plus: Notable Items 30 (3)
Adjusted EBITDA $ 281 $ 474
Three months ended
March 31, March 31,
Phosphates Earnings 2024 2023
(in millions)
Operating Earnings $ 40 $ 266
Plus: Depreciation, Depletion and Amortization 117 116
Plus: Accretion Expense 20 16
Plus: Foreign Exchange Gain (Loss) 2 (2)
Plus: Other Income (Expense) 3 -
Plus: Dividends received from equity investment 15 25
Less: Earnings from Consolidated Noncontrolling Interests 10 25
Plus: Notable Items 90 (14)
Adjusted EBITDA $ 277 $ 382
12
-------------------------------------------------------------------------------
Three months ended
March 31, March 31,
Mosaic Fertilizantes 2024 2023
(in millions)
Operating Earnings (Loss) $ 42 $ (32)
Plus: Depreciation, Depletion and Amortization 40 32
Plus: Accretion Expense 5 5
Plus: Foreign Exchange Gain (Loss) (45) 23
Plus: Other Income (Expense) (2) (1)
Less: Earnings (Loss) from Consolidated Noncontrolling Interests 1 -
Plus: Notable Items 44 (24)
Adjusted EBITDA $ 83 $ 3
Three months ended
Potash Gross Margin March 31, March 31,
(per tonne)
2024 2023
Gross margin / tonne $ 98 $ 216
Notable items in gross margin / tonne - -
Adjusted gross margin / tonne $ 98 $ 216
Three months ended
Phosphate Gross Margin March 31, March 31,
(per tonne)
2024 2023
Gross margin / tonne $ 97 $ 141
Notable items in gross margin / tonne - -
Adjusted gross margin / tonne $ 97 $ 141
Three months ended
Mosaic Fertilizantes Gross Margin March 31, March 31,
(per tonne)
2024 2023
Gross margin / tonne $ 44 $ (1)
Notable items in gross margin / tonne (1) -
Adjusted gross margin / tonne $ 43 $ (1)
13
Exhibit 99.2
The Mosaic Company
Selected Calendar Quarter Financial Information
(Unaudited)
Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024
Consolidated
data
(in millions,
except per share)
Diluted net earnings $ 2.85 $ 2.42 $ 1.52 $ 1.28 $ 1.11 $ (0.01) $ 1.11 $ 0.14
(loss) per share
Notable items impact (0.79) (0.80) (0.22) 0.14 0.07 (0.69) 0.40 (0.51)
on earnings per share
(a)
Adjusted diluted net $ 3.64 $ 3.22 $ 1.74 $ 1.14 $ 1.04 $ 0.68 $ 0.71 $ 0.65
earnings per share
(a)
Diluted weighted average 363.1 347.7 343.8 338.7 333.7 332.0 327.7 323.5
# of shares outstanding
Total Net $ 5,373 $ 5,348 $ 4,481 $ 3,604 $ 3,395 $ 3,548 $ 3,149 $ 2,679
Sales
Cost of 3,526 3,846 3,512 2,934 2,824 3,139 2,589 2,280
goods sold
Gross $ 1,847 $ 1,502 $ 969 $ 670 $ 571 $ 409 $ 560 $ 399
Margin
SG&A 108 124 133 127 130 120 123 107
Other operating 65 224 136 (2) 72 144 158 119
(income) expense
Operating $ 1,674 $ 1,154 $ 700 $ 545 $ 369 $ 145 $ 279 $ 173
earnings
Interest (34) (31) (34) (41) (36) (17) (35) (48)
expense, net
Consolidated foreign (227) (61) 75 51 149 (97) 91 (100)
currency gain/(loss)
Earnings from consolidated 1,377 1,061 677 546 474 (19) 324 25
companies before income taxes
Provision for (benefit 369 277 206 118 108 (6) (44) 6
from) income taxes
Earnings (loss) from $ 1,008 $ 784 $ 471 $ 428 $ 366 $ (13) $ 368 $ 19
consolidated companies
Equity in net earnings (loss) 36 72 57 31 13 16 - 37
of nonconsolidated companies
Less: Net earnings (loss) attributable 8 14 5 24 10 7 3 11
to noncontrolling interests
Net earnings (loss) $ 1,036 $ 842 $ 523 $ 435 $ 369 $ (4) $ 365 $ 45
attributable to Mosaic
After tax Notable items $ (286) $ (277) $ (75) $ 46 $ 22 $ (231) $ 131 $ (165)
included in earnings
Gross 34 % 28 % 22 % 19 % 17 % 12 % 18 % 15 %
Margin Rate
Effective Tax Rate 27 % 26 % 30 % 22 % 23 % 32 % (14) % 24 %
(including discrete tax)
Discrete Tax $ (14) $ (12) $ (9) $ 14 $ 10 $ 17 $ 2 $ 1
benefit (expense)
Depreciation, Depletion $ 245 $ 229 $ 233 $ 220 $ 244 $ 239 $ 257 $ 241
and Amortization
Accretion $ 20 $ 19 $ 22 $ 23 $ 23 $ 23 $ 27 $ 27
Expense
Share-Based $ (1) $ 6 $ 6 $ 12 $ 9 $ 6 $ 6 $ 9
Compensation Expense
Notable $ 361 $ 354 $ 84 $ (66) $ (32) $ 335 $ - $ 222
Items
Adjusted $ 2,028 $ 1,686 $ 1,051 $ 777 $ 744 $ 594 $ 646 $ 576
EBITDA
(b)
Net cash provided by (used $ 1,585 $ 889 $ 956 $ 149 $ 1,073 $ 647 $ 538 $ (80)
in) operating activities
Cash paid for interest (net 80 3 83 8 80 5 76 17
of amount capitalized)
Cash paid for income 233 253 370 226 147 49 (36) 99
taxes (net of refunds)
Net cash used in $ (265) $ (355) $ (343) $ (221) $ (312) $ (422) $ (362) $ (388)
investing activities
Capital (263) (354) (341) (322) (310) (412) (359) (383)
expenditures
Net cash (used in) provided $ (1,331) $ (650) $ (573) $ (209) $ (607) $ (254) $ (411) $ 458
by financing activities
Cash dividends (54) (51) (51) (152) (68) (66) (65) (70)
paid
Effect of exchange $ (33) $ (20) $ (8) $ 4 $ 9 $ (10) $ (6) $ (4)
rate changes on cash
Net change in cash $ (44) $ (135) $ 32 $ (277) $ 164 $ (39) $ (241) $ (14)
and cash equivalents
Short-term $ 17 $ 201 $ 225 $ 855 $ 229 $ 300 $ 400 $ 1,204
debt
Long-term debt (including 3,960 3,959 3,397 3,389 3,393 3,357 3,362 3,350
current portion)
Cash & cash 839 703 735 465 626 591 349 337
equivalents
Net $ 3,138 $ 3,457 $ 2,887 $ 3,779 $ 2,996 $ 3,066 $ 3,413 $ 4,217
debt
Segment
Contributions
(in millions)
Phosphate $ 1,801 $ 1,577 $ 1,310 $ 1,382 $ 1,286 $ 986 $ 1,070 $ 1,169
Potash 1,580 1,432 1,136 907 849 720 758 643
Mosaic 2,260 2,629 1,910 1,343 1,419 1,731 1,192 886
Fertilizantes
Corporate (268) (290) 125 (28) (159) 111 129 (19)
and Other
(c)
Total net $ 5,373 $ 5,348 $ 4,481 $ 3,604 $ 3,395 $ 3,548 $ 3,149 $ 2,679
sales
Phosphate $ 578 $ 131 $ 145 $ 266 $ 146 $ (58) $ 21 $ 40
Potash 915 793 497 402 328 200 222 198
Mosaic 420 323 (20) (32) (20) 77 50 42
Fertilizantes
Corporate (239) (93) 78 (91) (85) (74) (14) (107)
and Other
(c)
Consolidated $ 1,674 $ 1,154 $ 700 $ 545 $ 369 $ 145 $ 279 $ 173
operating earnings
-------------------------------------------------------------------------------
Phosphate 1,675 1,651 1,571 1,836 1,922 1,651 1,582 1,644
(d)
Potash 2,304 2,142 1,863 1,910 2,163 2,220 2,577 2,163
(d)
Mosaic Fertilizantes 2,320 2,824 2,472 2,080 2,385 3,060 2,158 1,715
Corporate and Other 533 221 466 420 359 482 618 333
Total finished product tonnes sold 6,832 6,838 6,372 6,246 6,829 7,413 6,935 5,855
('000 tonnes)
Sales of Performance Products ('000 tonnes) 741 790 1,265 819 977 1,305 1,044 787
(e)
-------------------------------------------------------------------------------
The Mosaic Company - Phosphate Segment
Selected Calendar Quarter Financial Information
(Unaudited)
Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024
Net Sales and
Gross Margin
(in millions,
except per tonne)
Segment income
statement
Net $ 1,801 $ 1,577 $ 1,310 $ 1,382 $ 1,286 $ 986 $ 1,070 $ 1,169
Sales
Cost of 1,159 1,219 1,078 1,123 1,070 899 931 1,010
Goods Sold
Gross $ 642 $ 358 $ 232 $ 259 $ 216 $ 87 $ 139 $ 159
Margin
Notable Items Included - (9) (30) - (31) - (28) -
in Gross Margin
Adjusted $ 642 $ 367 $ 262 $ 259 $ 247 $ 87 $ 167 $ 159
Gross Margin
(b)
SG&A 10 8 15 10 11 10 11 13
Other operating 54 219 72 (17) 59 135 107 106
(income) expense
Operating $ 578 $ 131 $ 145 $ 266 $ 146 $ (58) $ 21 $ 40
Earnings
Plus: Depreciation, 133 121 111 116 129 117 124 117
Depletion and Amortization
Plus: Accretion 14 13 15 16 16 16 19 20
Expense
Plus: Foreign - 3 (4) (2) (2) 4 (1) 2
Exchange Gain (Loss)
Plus: Other (24) 1 (9) - (1) (6) (9) 3
Income (Expense)
Plus: Dividends from - - - 25 - - - 15
equity investments
Less: Earnings (loss) from 9 14 5 25 12 8 2 10
Consolidated Noncontrolling Interests
Plus: Notables 66 226 95 (14) 109 136 107 90
Items
Adjusted $ 758 $ 481 $ 348 $ 382 $ 385 $ 201 $ 259 $ 277
EBITDA
(b)
Capital $ 157 $ 168 $ 159 $ 142 $ 119 $ 157 $ 208 $ 197
expenditures
Gross Margin $ / tonne $ 383 $ 217 $ 148 $ 141 $ 112 $ 53 $ 88 $ 97
of finished product
Adjusted Gross Margin $ / $ 383 $ 222 $ 167 $ 141 $ 129 $ 53 $ 106 $ 97
tonne of finished product
Gross margin as a 36 % 23 % 18 % 19 % 17 % 9 % 13 % 14 %
percent of sales
Freight included in finished $ 94 $ 98 $ 95 $ 96 $ 102 $ 92 $ 105 $ 103
goods (in millions)
Idle/Turnaround costs $ 79 $ 79 $ 70 $ 42 $ 34 $ 25 $ 32 $ 56
(excluding notable items)
Operating Data
Sales volumes
('000 tonnes)
(d)
DAP/MAP 814 824 844 1,022 928 913 762 900
Performance & 780 750 640 740 919 673 741 673
other products
(f)
Other 81 77 87 74 75 65 79 71
products
(i)
Total Finished 1,675 1,651 1,571 1,836 1,922 1,651 1,582 1,644
Product
(d)
DAP selling price $ 920 $ 809 $ 722 $ 660 $ 585 $ 487 $ 552 $ 598
(fob plant)
(q)
Average finished product $ 1,048 $ 924 $ 794 $ 717 $ 634 $ 569 $ 658 $ 677
selling price (destination)
(g)
Production
Volumes
('000 tonnes)
Total tonnes 1,636 1,664 1,602 1,836 1,660 1,593 1,479 1,577
produced
(h)
Operating 66 % 67 % 65 % 74 % 67 % 64 % 60 % 64 %
Rate
Raw Materials
Ammonia used $ 236 $ 236 $ 243 $ 274 $ 240 $ 234 $ 209 $ 246
in production
% manufactured ammonia 22 % 5 % 42 % 29 % 44 % 32 % 53 % 1 %
used in production
Sulfur used $ 764 $ 781 $ 745 $ 840 $ 771 $ 735 $ 549 $ 725
in production
% prilled sulfur 5 % - % 3 % 7 % 11 % 5 % 6 % 1 %
used in production
Realized costs
($/tonne)
Ammonia $ 591 $ 665 $ 653 $ 605 $ 441 $ 353 $ 366 $ 404
(tonne)
(j)
Sulfur $ 385 $ 436 $ 348 $ 236 $ 195 $ 156 $ 152 $ 142
(long ton)
(k)
Blended $ 64 $ 68 $ 78 $ 77 $ 79 $ 81 $ 77 $ 81
rock
Phosphate cash conversion $ 86 $ 85 $ 96 $ 96 $ 105 $ 105 $ 118 $ 110
costs, production / tonne
(r)
Cash costs of U.S. mined $ 46 $ 41 $ 48 $ 58 $ 56 $ 56 $ 56 $ 57
rock/production tonne
(s)
ARO cash spending $ 28 $ 33 $ 43 $ 41 $ 41 $ 42 $ 41 $ 40
(in millions)
-------------------------------------------------------------------------------
MWSPC equity earnings (loss) $ 34 $ 72 $ 58 $ 31 $ 10 $ 17 $ - $ 37
MWSPC total sales tonnes (DAP/MAP/NPK) 413 599 684 762 649 771 722 671
Miski Mayo external sales revenue $ 21 $ 33 $ 38 $ 41 $ 47 $ 33 $ 18 $ 37
-------------------------------------------------------------------------------
The Mosaic Company - Potash Segment
Selected Calendar Quarter Financial Information
(Unaudited)
Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024
Net Sales and
Gross Margin
(in millions,
except per tonne)
Segment income
statement
Net $ 1,580 $ 1,432 $ 1,136 $ 907 $ 849 $ 720 $ 758 $ 643
Sales
Cost of 652 633 598 494 513 510 503 431
Goods Sold
Gross $ 928 $ 799 $ 538 $ 413 $ 336 $ 210 $ 255 $ 212
Margin
Notable Items Included - - - - - - - -
in Gross Margin
Adjusted $ 928 $ 799 $ 538 $ 413 $ 336 $ 210 $ 255 $ 212
Gross Margin
(b)
SG&A 8 6 9 8 7 6 8 9
Other operating 5 - 32 3 1 4 25 5
(income) expense
Operating $ 915 $ 793 $ 497 $ 402 $ 328 $ 200 $ 222 $ 198
Earnings
Plus: Depreciation, 81 76 73 70 74 66 89 82
Depletion and Amortization
Plus: Accretion 2 2 2 2 2 2 3 2
Expense
Plus: Foreign (23) (19) 6 3 23 (26) 41 (31)
Exchange Gain (Loss)
Plus: Other - - - - - (43) (2) -
Income (Expense)
Plus: Notable 23 19 19 (3) (19) 68 (31) 30
Items
Adjusted $ 998 $ 871 $ 597 $ 474 $ 408 $ 267 $ 322 $ 281
EBITDA
(b)
Capital $ 67 $ 78 $ 72 $ 93 $ 74 $ 85 $ 105 $ 97
expenditures
Gross Margin $ / tonne $ 403 $ 373 $ 289 $ 216 $ 155 $ 95 $ 99 $ 98
of finished product
Adjusted Gross Margin $ / $ 403 $ 373 $ 289 $ 216 $ 155 $ 95 $ 99 $ 98
tonne of finished product
Gross margin as a 59 % 56 % 47 % 46 % 40 % 29 % 34 % 33 %
percent of sales
Supplemental
Cost Information
Canadian $ 274 $ 258 $ 238 $ 121 $ 95 $ 86 $ 102 $ 64
resource taxes
Royalties $ 32 $ 31 $ 24 $ 19 $ 13 $ 9 $ 13 $ 10
Freight $ 76 $ 55 $ 66 $ 80 $ 94 $ 99 $ 78 $ 86
(l)
Idle/Turnaround costs $ 9 $ 13 $ 24 $ 22 $ 35 $ 37 $ 3 $ 9
(excluding notable items)
Operating Data
Sales volumes
('000 tonnes)
(d)
MOP 2,045 1,952 1,707 1,696 1,883 2,031 2,359 1,927
Performance & 245 178 143 201 270 177 207 225
other products
(m)
Other 14 12 13 13 10 12 11 11
products
(i)
Total Finished 2,304 2,142 1,863 1,910 2,163 2,220 2,577 2,163
Product
(d)
Crop Nutrients 727 439 594 739 881 1,129 773 838
North America
Crop Nutrients 1,415 1,574 1,145 1,053 1,144 1,007 1,666 1,195
International
Non-Agricultural 162 129 125 118 138 84 138 130
Total Finished 2,304 2,142 1,863 1,910 2,163 2,220 2,577 2,163
Product
(d)
MOP selling price $ 678 $ 666 $ 581 $ 421 $ 326 $ 266 $ 243 $ 241
(fob mine)
(o)
Average finished product $ 686 $ 669 $ 610 $ 475 $ 392 $ 324 $ 294 $ 297
selling price (destination)
(g)
Production
Volumes
('000 tonnes)
Production 2,436 2,266 2,151 1,944 1,921 1,854 2,527 2,338
Volume
Operating 87 % 81 % 77 % 69 % 69 % 66 % 90 % 81 %
Rate
MOP cash costs of production $ 78 $ 78 $ 76 $ 81 $ 74 $ 73 $ 66 $ 72
including brine / production tonne
(n)
ARO cash spending $ 13 $ 11 $ 5 $ 3 $ 3 $ 3 $ 2 $ 1
(in millions)
Average $ 1.276 $ 1.304 $ 1.358 $ 1.352 $ 1.343 $ 1.342 $ 1.361 $ 1.348
CAD / USD
-------------------------------------------------------------------------------
The Mosaic Company - Mosaic Fertilizantes Segment
Selected Calendar Quarter Financial Information
(Unaudited)
Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024
Net Sales and
Gross Margin
(in millions,
except per tonne)
Segment income
statement
Net $ 2,260 $ 2,629 $ 1,910 $ 1,343 $ 1,419 $ 1,731 $ 1,192 $ 886
Sales
Cost of 1,810 2,281 1,882 1,344 1,406 1,625 1,098 811
Goods Sold
Gross $ 450 $ 348 $ 28 $ (1) $ 13 $ 106 $ 94 $ 75
Margin
Notable Items Included - 14 (1) - (13) (2) (3) 1
in Gross Margin
Adjusted $ 450 $ 334 $ 29 $ (1) $ 26 $ 108 $ 97 $ 74
Gross Margin
(b)
SG&A 27 25 29 26 29 26 29 30
Other operating 3 - 19 5 4 3 15 3
(income) expense
Operating $ 420 $ 323 $ (20) $ (32) $ (20) $ 77 $ 50 $ 42
Earnings
Plus: Depreciation, 27 28 45 32 38 54 41 40
Depletion and Amortization
Plus: Accretion 4 4 5 5 5 5 5 5
Expense
Plus: Foreign (83) (66) 38 23 73 (48) 32 (45)
Exchange Gain (Loss)
Plus: Other (1) (1) (1) (1) (1) (1) (1) (2)
Income (Expense)
Less: Earnings from Consolidated (1) - - - (2) - - 1
Noncontrolling Interests
Plus: Notable 76 55 (38) (24) (31) 60 (16) 44
Items
Adjusted $ 444 $ 343 $ 29 $ 3 $ 66 $ 147 $ 111 $ 83
EBITDA
(b)
Capital $ 39 $ 92 $ 100 $ 87 $ 63 $ 118 $ 68 $ 82
expenditures
Gross Margin $ / tonne $ 194 $ 123 $ 11 $ (1) $ 5 $ 35 $ 44 $ 44
of finished product
Adjusted Gross Margin $ / $ 194 $ 118 $ 12 $ (1) $ 11 $ 35 $ 45 $ 43
tonne of finished product
Gross margin as a 20 % 13 % 1 % - % 1 % 6 % 8 % 8 %
percent of sales
Idle/Turnaround costs $ 30 $ 44 $ 29 $ 11 $ 30 $ 28 $ 26 15
(excluding notable items)
Operating Data
Sales volumes
('000 tonnes)
Phosphate produced 638 488 505 510 611 622 492 324
in Brazil
Potash produced 46 33 40 44 44 62 45 32
in Brazil
Purchased nutrients 1,636 2,303 1,927 1,526 1,730 2,376 1,621 1,359
for distribution
(p)
Total Finished 2,320 2,824 2,472 2,080 2,385 3,060 2,158 1,715
Product
Sales of Performance 290 574 473 211 283 660 341 123
Products ('000 tonnes)
(e)
Brazil MAP price (Brazil production $ 1,021 $ 866 $ 663 $ 669 $ 653 $ 533 $ 580 $ 581
delivered price to third party)
Average finished product $ 974 $ 931 $ 773 $ 646 $ 595 $ 566 $ 552 $ 517
selling price (destination)
(g)
Production
Volumes
('000 tonnes)
MAP 266 174 261 235 219 160 256 241
TSP 129 85 82 106 88 131 50 99
SSP 275 343 332 283 240 321 316 278
DCP 85 114 126 108 133 133 120 124
NPK 55 25 49 45 56 62 32 51
Total phosphate 810 741 851 777 736 807 774 793
tonnes produced
MOP 38 69 100 82 61 106 114 104
Phosphate 83 % 76 % 87 % 78 % 74 % 81 % 77 % 79 %
operating rate
Potash 29 % 55 % 80 % 65 % 49 % 85 % 91 % 83 %
operating rate
Realized Costs
($/tonne)
Ammonia/tonne $ 1,396 $ 1,267 $ 1,354 $ 1,150 $ 912 $ 667 $ 655 $ 705
-------------------------------------------------------------------------------
Sulfur $ 384 $ 432 $ 402 $ 278 $ 258 $ 219 $ 179 $ 173
(long ton)
Blended $ 102 $ 106 $ 106 $ 124 $ 128 $ 117 $ 117 $ 115
rock
Purchases
('000 tonnes)
DAP/MAP 102 30 38 146 117 20 58 68
from Mosaic
MicroEssentials(R) 448 370 205 277 427 152 163 169
from Mosaic
Potash from 663 798 417 235 756 672 404 358
Mosaic/Canpotex
Phosphate cash conversion costs R$506 R$533 R$483 R$538 R$540 R$495 R$546 R$502
in BRL, production / tonne
(r)
Potash cash conversion costs R$2,285 R$1,591 R$1,176 R$1,455 R$1,701 R$1,143 R$1,064 R$970
in BRL, production / tonne
Mined rock costs in BRL, R$500 R$525 R$632 R$606 R$533 R$498 R$548 R$597
cash produced / tonne
ARO cash spending $ 4 $ 5 $ 11 $ 3 $ 4 $ 6 $ 7 $ 2
(in millions)
Average $ 4.917 $ 5.244 $ 5.255 $ 5.196 $ 4.954 $ 4.880 $ 4.953 $ 4.952
BRL / USD
-------------------------------------------------------------------------------
The Mosaic Company - Corporate and Other Segment
Selected Calendar Quarter Financial Information
(Unaudited)
Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024
Net Sales and
Gross Margin
(in millions)
Segment income
statement
Net $ (268) $ (290) $ 125 $ (28) $ (159) $ 111 $ 129 $ (19)
Sales
Cost of (95) (287) (46) (27) (165) 105 57 28
Goods Sold
Gross Margin $ (173) $ (3) $ 171 $ (1) $ 6 $ 6 $ 72 $ (47)
(Loss)
Notable items Included (62) (76) 14 (1) 34 (45) 40 (31)
in Gross Margin
Adjusted Gross $ (111) $ 73 $ 157 $ - $ (28) $ 51 $ 32 $ (16)
Margin (Loss)
(b)
SG&A 63 85 80 83 83 78 75 55
Other operating 3 5 13 7 8 2 11 5
(income) expense
Operating $ (239) $ (93) $ 78 $ (91) $ (85) $ (74) $ (14) $ (107)
Earnings (Loss)
Plus: Depreciation, 4 4 4 2 3 2 3 2
Depletion and Amortization
Plus: Share-Based (1) 6 6 12 9 6 6 9
Compensation Expense
Plus: Foreign (121) 21 34 27 54 (26) 19 (27)
Exchange Gain (Loss)
Plus: Other (11) (1) (53) (7) (5) - - -
Income (Expense)
Less: Earnings (Loss) from - - - - - - - -
Consolidated Noncontrolling Interests
Plus: Notable 196 54 8 (25) (91) 71 (60) 58
Items
Adjusted $ (172) $ (9) $ 77 $ (82) $ (115) $ (21) $ (46) $ (65)
EBITDA
(b)
Elimination of profit in $ (180) $ 104 $ 171 $ 20 $ 35 $ 45 $ 16 $ (15)
inventory included in COGS
Unrealized gain (loss) on $ (59) $ (76) $ 14 $ (1) $ 34 $ (45) $ 41 $ (31)
derivatives included in COGS
Operating Data
Sales 533 221 466 420 359 482 618 333
volumes
('000
tonnes)
Sales of Performance 14 9 6 - - - - -
Products ('000 tonnes)
Average finished product $ 732 $ 720 $ 692 $ 636 $ 478 $ 423 $ 414 $ 389
selling price (destination)
(g)
Purchases
('000 tonnes)
DAP/MAP - 6 47 - 31 - - -
from Mosaic
MicroEssentials(R) - 15 1 16 3 - 2 3
from Mosaic
Potash from 471 332 337 296 126 - 345 322
Mosaic/Canpotex
-------------------------------------------------------------------------------
The Mosaic Company
Selected Calendar Quarter Financial Information
(Unaudited)
Notable Items
Q1 2024
Description Segment Line Item Amount Tax Effect EPS Impact
(in millions) (t) (per basic
(in millions) share)
Foreign currency Consolidated Foreign currency $ (100) $ 28 $ (0.22)
transaction gain (loss) transaction gain (loss)
Unrealized gain Corporate Cost of (31) 8 (0.07)
(loss) on derivatives and Other goods sold
Closed and indefinitely Phosphate Other operating (11) 3 (0.03)
idled facility costs income (expense)
FX functional Mosaic Cost of 1 - -
currency Fertilizantes goods sold
Realized gain (loss) on Phosphate Other non-operating 4 (1) 0.01
RCRA Trust Securities income (expense)
ARO Phosphate Other operating (14) 4 (0.03)
Adjustment income (expense)
Environmental Phosphate Other operating (77) 21 (0.17)
reserve income (expense)
Total Notable $ (228) $ 63 $ (0.51)
Items
Q4 2023
Description Segment Line Item Amount Tax Effect EPS Impact
(in millions) (t) (per basic
(in millions) share)
Foreign currency Consolidated Foreign currency $ 79 $ (16) $ 0.20
transaction gain (loss) transaction gain (loss)
Unrealized gain Corporate Cost of 40 (7) 0.10
(loss) on derivatives and Other goods sold
Closed and indefinitely Phosphate Other operating (9) 2 (0.03)
idled facility costs income (expense)
FX functional Mosaic Cost of (3) 1 (0.01)
currency Fertilizantes goods sold
Realized gain (loss) on Phosphate Other non-operating (7) 2 (0.02)
RCRA Trust Securities income (expense)
ARO Phosphate Other operating (4) 1 (0.01)
Adjustment income (expense)
Environmental Phosphate Other operating (64) 11 (0.16)
reserve income (expense)
Land Phosphate Cost of (28) 5 (0.07)
reclamation goods sold
ARO Potash Other operating (10) 2 (0.02)
adjustment income (expense)
Tax law Mosaic (Provision for) benefit - 136 0.42
change Fertilizantes from income taxes
Total Notable $ (6) $ 137 $ 0.40
Items
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Q3 2023
Description Segment Line Item Amount Tax Effect EPS Impact
(in millions) (t) (per basic
(in millions) share)
Foreign currency Consolidated Foreign currency $ (107) $ 27 $ (0.23)
transaction gain (loss) transaction gain (loss)
Unrealized gain Corporate Cost of (45) 12 (0.10)
(loss) on derivatives and Other goods sold
Closed and indefinitely Phosphate Other operating (12) 3 (0.03)
idled facility costs income (expense)
FX functional Mosaic Cost of (2) 1 -
currency Fertilizantes goods sold
Realized gain (loss) on Phosphate Other non-operating (6) 1 (0.01)
RCRA Trust Securities income (expense)
ARO Phosphate Other operating (123) 32 (0.28)
Adjustment income (expense)
Environmental Phosphate Other operating (3) 1 (0.01)
reserve income (expense)
Pension plan Potash Other non-operating (42) 10 (0.10)
termination settlement income (expense)
Discrete Consolidated (Provision for) benefit - 22 0.07
tax items from income taxes
Total Notable $ (340) $ 109 $ (0.69)
Items
Q2 2023
Description Segment Line Item Amount Tax Effect EPS Impact
(in millions) (t) (per basic
(in millions) share)
Unrealized foreign currency Consolidated Foreign currency $ 114 $ (28) $ 0.26
transaction gain (loss) transaction gain (loss)
Unrealized gain Corporate Cost of 34 (9) 0.08
(loss) on derivatives and Other goods sold
Closed and indefinitely Phosphate Other operating (12) 3 (0.03)
idled facility costs income (expense)
FX functional Mosaic Cost of (13) 3 (0.03)
currency Fertilizantes goods sold
Realized gain (loss) on Phosphate Other non-operating 2 - -
RCRA Trust Securities income (expense)
ARO Phosphate Other operating (28) 7 (0.06)
Adjustment income (expense)
Environmental Phosphate Other operating (37) 9 (0.08)
reserve income (expense)
Land Phosphate Cost of (31) 8 (0.07)
reclamation goods sold
Total Notable $ 29 $ (7) $ 0.07
Items
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Q1 2023
Description Segment Line Item Amount Tax Effect EPS Impact
(in millions) (t) (per basic
(in millions) share)
Foreign currency Consolidated Foreign currency $ 51 $ (12) $ 0.11
transaction gain (loss) transaction gain (loss)
Unrealized gain Corporate Cost of (1) - -
(loss) on derivatives and Other goods sold
Closed and indefinitely Phosphate Other operating (12) 3 (0.03)
idled facility costs income (expense)
Gain on sale of Phosphate Other operating 57 (14) 0.13
Streamsong Resort income (expense)
Realized gain (loss) on Phosphate Other non-operating (8) 2 (0.02)
RCRA Trust Securities income (expense)
ARO Phosphate Other operating (20) 5 (0.04)
Adjustment income (expense)
Environmental Phosphate Other operating (6) 1 (0.01)
reserve income (expense)
Total Notable $ 61 $ (15) $ 0.14
Items
Q4 2022
Description Segment Line Item Amount Tax Effect EPS Impact
(in millions) (t) (per basic
(in millions) share)
Foreign currency Consolidated Foreign currency $ 75 $ (18) $ 0.16
transaction gain (loss) transaction gain (loss)
Unrealized gain Corporate Cost of 14 (4) 0.03
(loss) on derivatives and Other goods sold
Closed and indefinitely Phosphate Other operating (11) 3 (0.03)
idled facility costs income (expense)
FX functional Mosaic Cost of (1) - -
currency Fertilizantes goods sold
Fixed asset Phosphate Other operating (6) 2 (0.01)
write-off income (expense)
ARO Potash Other operating 3 (1) 0.01
Adjustment income (expense)
Discrete Consolidated (Provision for) benefit - (9) (0.03)
tax items from income taxes
Realized gain (loss) on Phosphates Other non-operating (20) 5 (0.04)
RCRA Trust Securities income (expense)
Environmental Phosphates Other operating (44) 11 (0.09)
reserve income (expense)
Hurricane Ian Phosphates Cost of (30) 8 (0.07)
idle costs goods sold
Insurance Phosphates Other operating 5 (1) 0.01
proceeds income (expense)
Pension plan Consolidated Other non-operating (42) 10 (0.09)
termination settlement income (expense)
Environmental Potash Other operating (28) 7 (0.06)
reserve income (expense)
Lease termination Corporate Other operating (4) 1 (0.01)
and severance and Other income (expense)
Total Notable $ (89) $ 14 $ (0.22)
Items
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Q3 2022
Description Segment Line Item Amount Tax Effect EPS Impact
(in millions) (t) (per basic
(in millions) share)
Foreign currency Consolidated Foreign currency $ (61) $ 16 $ (0.13)
transaction gain (loss) transaction gain (loss)
Unrealized gain Corporate Cost of (76) 20 (0.16)
(loss) on derivatives and Other goods sold
Closed and indefinitely Phosphate Other operating (12) 4 (0.02)
idled facility costs income (expense)
FX functional Mosaic Cost of 14 (4) 0.03
currency Fertilizantes goods sold
Discrete Consolidated (Provision for) benefit - (12) (0.04)
tax items from income taxes
ARO Phosphates Other operating (143) 36 (0.31)
Adjustment income (expense)
Environmental Phosphates Other operating (71) 18 (0.15)
reserve income (expense)
Hurricane Ian Phosphates Cost of (9) 2 (0.02)
idle costs goods sold
Insurance Phosphates Other operating 4 (1) 0.01
proceeds income (expense)
ARO Mosaic Other operating (3) 1 (0.01)
Adjustment Fertilizantes income (expense)
Total Notable $ (357) $ 80 $ (0.80)
Items
Q2 2022
Description Segment Line Item Amount Tax Effect EPS Impact
(in millions) (t) (per basic
(in millions) share)
Foreign currency Consolidated Foreign currency $ (227) $ 57 $ (0.47)
transaction gain (loss) transaction gain (loss)
Unrealized gain Corporate Cost of (59) 15 (0.12)
(loss) on derivatives and Other goods sold
Closed and indefinitely Phosphate Other operating (9) 3 (0.03)
idled facility costs income (expense)
Discrete Consolidated (Provision for) benefit - (14) (0.04)
tax items from income taxes
Realized gain (loss) on Phosphates Other non-operating (26) 7 (0.05)
RCRA Trust Securities income (expense)
Gain on sale Mosaic Other operating 7 (2) 0.02
of plant Fertilizantes income (expense)
ARO Phosphates Other operating (5) 1 (0.01)
Adjustment income (expense)
Environmental Phosphates Other operating (30) 7 (0.06)
reserve income (expense)
Write down of Corporate Other non-operating (12) 3 (0.02)
investment and Other income (expense)
Inventory lower Corporate Cost of (3) 1 (0.01)
of cost or market and Other goods sold
Total Notable $ (364) $ 78 $ (0.79)
Items
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Footnotes
(a)
Notable items impact on Earnings Per Share is calculated as notable item
amount plus income tax effect, based on expected annual effective tax rate,
divided by diluted weighted average shares. Adjusted Diluted Net Earnings per
Share is defined as diluted net earnings (loss) per share excluding the impact
of notable items. See "Non-GAAP Reconciliations".
(b)
See definitions of Adjusted EBITDA and Adjusted Gross Margin under "Non-GAAP
Reconciliations".
(c)
Includes elimination of intersegment sales.
(d)
Finished product sales volumes include intersegment sales.
(e)
Includes MicroEssentials, K-Mag, Aspire and Sus-Terra sales tonnes.
(f)
Includes MicroEssentials performance products.
(g)
Average price of all finished products sold by Potash, Phosphate, Mosaic
Fertilizantes and India/China.
(h)
Includes crop nutrient dry concentrates and animal feed ingredients.
(i)
Includes finished goods sales of feed and other products.
(j)
Amounts are representative of our average ammonia costs in cost of goods sold.
(k)
Amounts are representative of our average sulfur costs in cost of goods sold.
(l)
Includes inbound freight, outbound freight and warehousing costs on K-Mag,
animal feed and domestic MOP sales.
(m)
Includes K-Mag, and Aspire finished performance products.
(n)
MOP cash costs of production are reflective of actual costs during the period
excluding brine management costs, depreciation, depletion, accretion,
carbon-based and Canadian resource tax, idle and turnaround costs. Total
Production costs for MOP production excludes K-Mag costs, Aspire raw material
costs and incremental Aspire operating costs.
(o)
Excludes industrial and feed sales. Price has been calculated using the
average monthly foreign exchange rate.
(p)
Includes sales volumes of phosphate and potash nutrients purchased from other
Mosaic segments and Canpotex.
(q)
Includes intersegment sales.
(r)
Total production costs less depreciation, ARO costs including accretion and
idle and turnaround costs divided by metric tonnes of finished phosphate
production in the period.
(s)
Total production cost less depreciation/depletion, ARO costs including
accretion and idle and turnaround costs divided by metric tonnes of rock
produced in the period.
(t)
Tax impact is based on our expected annual effective rate.
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The Mosaic Company
Selected Calendar Quarter Financial Information
(Unaudited)
Non-GAAP Financial Measures
In addition to financial measures prepared in accordance with U.S. generally
accepted accounting principles ("GAAP"), Mosaic has presented in this Selected
Calendar Quarter Financial Information certain non-GAAP financial measures, or
measures calculated based on non-GAAP financial measures, including: Adjusted
Diluted Net Earnings Per Share, Consolidated Adjusted EBITDA, Segment Adjusted
EBITDA, and Adjusted Gross Margin. Generally, a non-GAAP financial measure is
a supplemental numerical measure of a company's performance, financial
position or cash flows that either excludes or includes amounts that are not
normally excluded or included in the most directly comparable measure
calculated and presented in accordance with GAAP. Each of the non-GAAP
financial measures we present is determined as described below.
The non-GAAP financial measures we present should not be considered as
substitutes for, or superior to, measures of financial performance prepared in
accordance with GAAP. In addition, because these non-GAAP measures, as
presented, 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 Diluted Net Earnings Per Share
Adjusted diluted net earnings per share is defined as diluted net earnings per
share, excluding the impact of notable items. Notable items impact on diluted
net earnings per share is calculated as notable item amount plus income tax
effect, based on expected annual effective tax rate, divided by diluted
weighted average shares. Management believes that adjusted diluted net
earnings per share provides securities analysts, investors and others, in
addition to management, 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 adjusted diluted
net earnings per share in analyzing and assessing Mosaic's overall
performance, for financial and operating decision-making, and to forecast and
plan for the future periods. Adjusted diluted net earnings per share also
assists our management in comparing our and our competitors' operating
results. Reconciliations of adjusted diluted net earnings per share to diluted
net earnings per share for the periods presented are provided under
"Consolidated Data" on the first page of this Selected Calendar Quarter
Financial Information.
Consolidated Adjusted EBITDA
Consolidated Adjusted EBITDA is defined as consolidated Net Income (Loss)
before net interest expense, depreciation, depletion and amortization, asset
retirement obligation accretion, share-based compensation expense and
provision for/(benefit from) income taxes less equity in net earnings (loss)
of nonconsolidated companies, net of dividends. Consolidated Adjusted EBITDA
is also adjusted for notable items that management excludes in analyzing our
performance. Consolidated Adjusted EBITDA is a non-GAAP financial measure that
we provide to assist securities analysts, investors, lenders and others in
their comparisons of operational performance, valuation and debt capacity
across companies with differing capital, tax and legal structures.
Consolidated Adjusted EBITDA should not be considered as an alternative to, or
more meaningful than, consolidated Net Income (Loss) as a measure of operating
performance. A reconciliation of Consolidated Net Income (Loss) to
Consolidated Adjusted EBITDA is provided below.
( Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024
in millions
)
Consolidated Net $ 1,036 $ 842 $ 523 $ 435 $ 369 $ (4) $ 365 $ 45
Income (Loss)
Less: Consolidated (34) (31) (34) (41) (36) (17) (35) (48)
Interest Expense, Net
Plus: Consolidated Depreciation, 245 229 233 220 244 239 257 241
Depletion & Amortization
Plus: Accretion 20 19 22 23 23 23 27 27
Expense
Plus: Share-Based Compensation (1) 6 6 12 9 6 6 9
Expense (Benefit)
Plus: Consolidated Provision for 369 277 206 118 108 (6) (44) 6
(Benefit from) Income Taxes
Less: Equity in net earnings (loss) of 36 72 57 6 13 16 - 22
nonconsolidated companies, net of dividends
Plus: Notable 361 354 84 (66) (32) 335 - 222
Items
Consolidated $ 2,028 $ 1,686 $ 1,051 $ 777 $ 744 $ 594 $ 646 $ 576
Adjusted EBITDA
-------------------------------------------------------------------------------
Segment Adjusted EBITDA
Adjusted EBITDA presented at the segment level is defined as the related
segment's operating earnings (loss) plus depreciation, depletion and
amortization, plus asset retirement obligation accretion, plus foreign
exchange gain (loss), plus other income (expense), plus dividends from equity
investments, less equity earnings (loss) from noncontrolling interests.
Adjusted EBITDA is also adjusted for notable items that management excludes in
analyzing our performance. We provide these non-GAAP financial measures
because we believe they are relevant and useful to securities analysts,
investors and others because they are part of our internal management
reporting and planning process, and our management uses these measures to
evaluate the operational performance and valuation of our segments. Management
also uses these measures as a method of comparing segment, performance with
that of its competitors. Segment Adjusted EBITDA should not be considered as
alternatives to, or more meaningful than, segment Operating Earnings (Loss)
and segment Operating Earnings (Loss)/sales tonne, respectively, as measures
of operating performance. Management believes Operating Earnings (Loss) and
segment Operating Earnings (Loss)/sales tonne, respectively, are the most
directly comparable GAAP measures because we do not allocate taxes on a
segment basis. Reconciliations of Segment Adjusted EBITDA to segment Operating
Earnings (Loss) and segment Operating (Loss) Earnings/sales tonne,
respectively, are provided as part of each segment's Selected Calendar Quarter
Financial Information.
Adjusted Gross Margin
Adjusted gross margin is defined as gross margin excluding the impact of
notable items. Management believes the adjusted measures provides security
analysts, investors, management & 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 adjusted gross margin in analyzing and assessing Mosaic's overall
performance for financial and operating decision-making and to forecast and
plan for future periods.
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