Delaware (State or other jurisdiction of incorporation) 4 Parkway North, Suite 400 Deerfield, IL (Address of principal executive offices) | 001-32597 (Commission File No.) | 20-2697511 (I.R.S. Employer Identification Number) 60015 (Zip Code) |
99.1 | Press release dated February 15, 2017 |
Date: | February 15, 2017 | CF INDUSTRIES HOLDINGS, INC. | |||
By: | /s/ Dennis P. Kelleher | ||||
Name: | Dennis P. Kelleher | ||||
Title: | Senior Vice President and Chief Financial Officer |
Exhibit Number | Description | |
99.1 | Press release dated February 15, 2017 |
4 Parkway North, Suite 400 | ||||
Deerfield, IL 60015 | ||||
www.cfindustries.com |
For additional information: | |
Media | Investors |
Chris Close | Martin Jarosick |
Director, Corporate Communications | Vice President, Investor Relations |
847-405-2542 - cclose@cfindustries.com | 847-405-2045 - mjarosick@cfindustries.com |
▪ | Net loss of $320 million, or $1.38 per diluted share; adjusted net loss(1) of $90 million, or $0.39 per diluted share(1) |
▪ | EBITDA(2) loss of $135 million; adjusted EBITDA(2) of $133 million |
▪ | New ammonia and urea plants at Port Neal Nitrogen Complex in operation |
▪ | Refinanced private placement notes |
▪ | Shipments of UAN in fourth quarter exceeded two million tons, a company record |
▪ | Record fourth quarter exports above 500,000 tons |
▪ | Net loss includes $134 million non-cash impairment charge related to Point Lisas Nitrogen Limited (PLNL) |
▪ | Net loss of $277 million, or $1.19 per diluted share; adjusted net earnings(1) of $109 million or $0.47 per diluted share(1) |
▪ | EBITDA(2) of $395 million; adjusted EBITDA(2) of $858 million |
▪ | Accelerated tax depreciation on capacity expansion projects driving estimated federal and state tax refunds of approximately $800 million, expect to receive in third quarter 2017 |
• | Record exports of approximately 1.4 million tons in 2016, 110 percent increase over prior year |
(1) | See reconciliations of adjusted net earnings and adjusted net earnings per diluted share to the most directly comparable GAAP measures in the tables accompanying this release. |
(2) | EBITDA is defined as net earnings attributable to common stockholders plus interest expense (income)-net, income taxes, and depreciation and amortization. See reconciliations of EBITDA and adjusted EBITDA to the most directly comparable GAAP measures in the tables accompanying this release. |
Three months ended December 31, | Twelve months ended December 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(dollars in millions, except per share and per MMBtu amounts) | |||||||||||||||
Net sales | $ | 867 | $ | 1,115 | $ | 3,685 | $ | 4,308 | |||||||
Cost of sales | 773 | 835 | 2,845 | 2,761 | |||||||||||
Gross margin | $ | 94 | $ | 280 | $ | 840 | $ | 1,547 | |||||||
Gross margin percentage | 10.8 | % | 25.1 | % | 22.8 | % | 35.9 | % | |||||||
Net (loss) earnings attributable to common stockholders | $ | (320 | ) | $ | 27 | $ | (277 | ) | $ | 700 | |||||
Adjusted net (loss) earnings (1) | $ | (90 | ) | $ | 168 | $ | 109 | $ | 896 | ||||||
Net (loss) earnings per diluted share | $ | (1.38 | ) | $ | 0.11 | $ | (1.19 | ) | $ | 2.96 | |||||
Adjusted net (loss) earnings per diluted share(1) | $ | (0.39 | ) | $ | 0.72 | $ | 0.47 | $ | 3.79 | ||||||
EBITDA(1) | $ | (135 | ) | $ | 254 | $ | 395 | $ | 1,666 | ||||||
Adjusted EBITDA(1) | $ | 133 | $ | 445 | $ | 858 | $ | 1,975 | |||||||
Tons of product sold (000s) | 4,683 | 3,982 | 16,957 | 13,718 | |||||||||||
Supplemental data (per MMBtu): | |||||||||||||||
Natural gas costs in cost of sales(2) | $ | 3.18 | $ | 2.82 | $ | 2.61 | $ | 3.00 | |||||||
Realized derivatives loss in cost of sales(3) | 0.06 | 0.41 | 0.46 | 0.28 | |||||||||||
Cost of natural gas in cost of sales | $ | 3.24 | $ | 3.23 | $ | 3.07 | $ | 3.28 | |||||||
Average daily market price of natural gas (per MMBtu): | |||||||||||||||
Henry Hub | $ | 2.99 | $ | 2.09 | $ | 2.48 | $ | 2.61 | |||||||
National Balancing Point UK | $ | 5.69 | $ | 5.58 | $ | 4.66 | $ | 6.53 | |||||||
Unrealized net mark-to-market (gain) loss on natural gas derivatives | $ | (91 | ) | $ | 97 | $ | (260 | ) | $ | 176 | |||||
Capital expenditures | $ | 392 | $ | 678 | $ | 2,211 | $ | 2,469 | |||||||
Production volume by product tons (000s): | |||||||||||||||
Ammonia(4) | 2,326 | 2,098 | 8,307 | 7,673 | |||||||||||
Granular urea | 914 | 758 | 3,368 | 2,520 | |||||||||||
UAN (32%) | 1,795 | 1,602 | 6,698 | 5,888 | |||||||||||
AN | 553 | 487 | 1,845 | 1,283 |
(1) | See reconciliations of EBITDA, adjusted EBITDA, adjusted net (loss) earnings and adjusted net (loss) earnings per diluted share to the most directly comparable GAAP measures in the tables accompanying this release. |
(2) | Includes the cost of natural gas that is included in cost of sales during the period under the first-in, first-out inventory cost method. |
(3) | 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. |
(4) | Gross ammonia production including amounts subsequently upgraded into other products. |
Three months ended December 31, | Twelve months ended December 31, | |||||||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||||||||||||||
Pre-Tax | After-Tax | Pre-Tax | After-Tax | Pre-Tax | After-Tax | Pre-Tax | After-Tax | |||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||
Capacity Expansion Projects: | ||||||||||||||||||||||||||||
Expansion project depreciation | (1) | $ | 56 | $ | 35 | $ | 13 | $ | 8 | $ | 116 | $ | 73 | $ | 13 | $ | 8 | |||||||||||
Start-up costs - Donaldsonville / Port Neal expansion plants | (1) | 34 | 21 | — | — | 52 | 32 | — | — | |||||||||||||||||||
Expansion project expenses | (2) | 14 | 9 | 15 | 9 | 73 | 46 | 51 | 32 | |||||||||||||||||||
Loss on foreign currency derivatives | (2) | 2 | 1 | 3 | 2 | — | — | 22 | 13 | |||||||||||||||||||
Strategic Venture with CHS: | ||||||||||||||||||||||||||||
Noncontrolling interest | (7) | 26 | 26 | — | — | 93 | 93 | — | — | |||||||||||||||||||
Loss on embedded derivative liability | (2) | 1 | 1 | — | — | 23 | 14 | — | — | |||||||||||||||||||
Debt Restructuring: | ||||||||||||||||||||||||||||
Loss on debt extinguishment | 167 | 105 | — | — | 167 | 105 | — | — | ||||||||||||||||||||
Debt and revolver amendment fees | (3) | 14 | 8 | — | — | 16 | 10 | — | — | |||||||||||||||||||
Private Senior Notes amendment arrangement fees | (4) | — | — | — | — | 2 | 1 | — | — | |||||||||||||||||||
CF Fertilisers UK Acquisition: | ||||||||||||||||||||||||||||
Gain on remeasurement of CF Fertilisers UK investment | (5) | — | — | — | — | — | — | (94 | ) | (94 | ) | |||||||||||||||||
Equity Method Investments: | ||||||||||||||||||||||||||||
Impairment of equity method investment in PLNL | (6) | 134 | 134 | 62 | 62 | 134 | 134 | 62 | 62 | |||||||||||||||||||
Loss on sale of equity method investments | (5) | — | — | — | — | — | — | 43 | 31 | |||||||||||||||||||
Transaction Costs and Termination of Agreement with OCI: | ||||||||||||||||||||||||||||
Transaction costs | — | — | 20 | 12 | 179 | 96 | 57 | 37 | ||||||||||||||||||||
Financing costs related to bridge loan commitment fee | (3) | — | — | — | — | 28 | 18 | 6 | 4 | |||||||||||||||||||
Other items: | ||||||||||||||||||||||||||||
Unrealized net mark-to-market (gain) loss on natural gas derivatives | (1) | (91 | ) | (57 | ) | 97 | 61 | (260 | ) | (163 | ) | 176 | 111 | |||||||||||||||
Loss (gain) on foreign currency transactions including intercompany loans | (2) | 7 | 8 | (6 | ) | (5 | ) | 93 | 93 | (8 | ) | — | ||||||||||||||||
Total Impact of Significant Items | $ | 364 | $ | 291 | $ | 204 | $ | 149 | $ | 716 | $ | 552 | $ | 328 | $ | 204 |
Three months ended December 31, | Twelve months ended December 31, | |||||||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||||||
Subtotals of Amounts Above by Line Item in the Consolidated Statements of Operations: | ||||||||||||||||||||
Cost of sales | $ | (1 | ) | $ | 110 | $ | (92 | ) | $ | 189 | ||||||||||
Selling, general and administrative expenses | — | — | 2 | — | ||||||||||||||||
Transaction costs | — | 20 | 179 | 57 | ||||||||||||||||
Other operating—net | 24 | 12 | 189 | 65 | ||||||||||||||||
Equity in (losses) earnings of operating affiliates | 134 | 62 | 134 | 62 | ||||||||||||||||
Interest expense | 14 | — | 44 | 6 | ||||||||||||||||
Loss on debt extinguishment | 167 | — | 167 | — | ||||||||||||||||
Equity in earnings of non-operating affiliates—net of taxes | — | — | — | (51 | ) | |||||||||||||||
Net earnings attributable to noncontrolling interests | 26 | — | 93 | — | ||||||||||||||||
Total Impact of Significant Items | $ | 364 | $ | 204 | $ | 716 | $ | 328 |
Three months ended December 31, | Twelve months ended December 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(dollars in millions, except per ton amounts) | |||||||||||||||
Net sales | $ | 211 | $ | 375 | $ | 981 | $ | 1,523 | |||||||
Cost of sales | 210 | 249 | 715 | 884 | |||||||||||
Gross margin | $ | 1 | $ | 126 | $ | 266 | $ | 639 | |||||||
Gross margin percentage | 0.5 | % | 33.6 | % | 27.1 | % | 42.0 | % | |||||||
Sales volume by product tons (000s) | 762 | 819 | 2,874 | 2,995 | |||||||||||
Sales volume by nutrient tons (000s)(1) | 626 | 671 | 2,358 | 2,456 | |||||||||||
Average selling price per product ton | $ | 277 | $ | 458 | $ | 341 | $ | 509 | |||||||
Average selling price per nutrient ton(1) | 337 | 560 | 416 | 620 | |||||||||||
Gross margin per product ton | $ | 1 | $ | 154 | $ | 93 | $ | 213 | |||||||
Gross margin per nutrient ton(1) | 2 | 188 | 113 | 260 | |||||||||||
Depreciation and amortization | $ | 37 | $ | 20 | $ | 96 | $ | 95 | |||||||
Unrealized net mark-to-market (gain) loss on natural gas derivatives | $ | (30 | ) | $ | 22 | $ | (85 | ) | $ | 40 |
(1) | Nutrient tons represent the tons of nitrogen within the product tons. |
• | Ammonia sales volume decreased for the fourth quarter of 2016 compared to the fourth quarter of 2015 as unfavorable weather and economic considerations, including declining year-over-year farmer disposable income and futures prices favoring soybeans over corn, led many farmers to delay ammonia application and planting decisions until spring. The decrease was partially offset by a significant increase in export sales. |
• | Ammonia average selling prices decreased primarily due to excess global nitrogen supply. Additionally, the company's ammonia sales during the quarter included a higher proportion of lower-priced industrial and export sales compared to the prior year. |
• | Ammonia gross margin per ton decreased in the fourth quarter of 2016 due to lower average selling prices, $32 million of start-up costs associated with the new Port Neal ammonia plant, and a $17 million increase in depreciation primarily related to the new Donaldsonville and Port Neal ammonia plants. The decrease was partially offset by a $30 million unrealized net mark-to-market gain on natural gas derivatives in the fourth quarter of 2016 compared to a $22 million unrealized net mark-to-market loss on natural gas derivatives in the fourth quarter of 2015. |
Three months ended December 31, | Twelve months ended December 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(dollars in millions, except per ton amounts) | |||||||||||||||
Net sales | $ | 189 | $ | 194 | $ | 831 | $ | 788 | |||||||
Cost of sales | 139 | 145 | 584 | 469 | |||||||||||
Gross margin | $ | 50 | $ | 49 | $ | 247 | $ | 319 | |||||||
Gross margin percentage | 26.5 | % | 25.2 | % | 29.7 | % | 40.4 | % | |||||||
Sales volume by product tons (000s) | 883 | 705 | 3,597 | 2,460 | |||||||||||
Sales volume by nutrient tons (000s)(1) | 406 | 325 | 1,654 | 1,132 | |||||||||||
Average selling price per product ton | $ | 214 | $ | 275 | $ | 231 | $ | 320 | |||||||
Average selling price per nutrient ton(1) | 466 | 597 | 502 | 696 | |||||||||||
Gross margin per product ton | $ | 57 | $ | 69 | $ | 69 | $ | 129 | |||||||
Gross margin per nutrient ton(1) | 123 | 150 | 149 | 281 | |||||||||||
Depreciation and amortization | $ | 37 | $ | 20 | $ | 112 | $ | 51 | |||||||
Unrealized net mark-to-market (gain) loss on natural gas derivatives | $ | (23 | ) | $ | 26 | $ | (67 | ) | $ | 47 |
(1) | Nutrient tons represent the tons of nitrogen within the product tons. |
• | Granular urea sales volume increased for the quarter primarily due to additional volume available for sale from the new urea capacity at the company's Donaldsonville Nitrogen Complex. |
• | Granular urea average selling price per ton decreased due to excess global nitrogen supply. |
• | Granular urea gross margin per ton decreased due to lower average selling prices, a $17 million increase in depreciation and amortization primarily associated with the new Donaldsonville and Port Neal urea plants and $2 million in start-up costs associated with the new Port Neal urea plant, offset by a $23 million unrealized net mark-to-market gain on natural gas derivatives in the fourth quarter of 2016 compared to a $26 million unrealized net mark-to-market loss on natural gas derivatives in the fourth quarter of 2015. |
Three months ended December 31, | Twelve months ended December 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(dollars in millions, except per ton amounts) | |||||||||||||||
Net sales | $ | 305 | $ | 368 | $ | 1,196 | $ | 1,480 | |||||||
Cost of sales | 274 | 277 | 920 | 955 | |||||||||||
Gross margin | $ | 31 | $ | 91 | $ | 276 | $ | 525 | |||||||
Gross margin percentage | 10.2 | % | 24.8 | % | 23.1 | % | 35.5 | % | |||||||
Sales volume by product tons (000s) | 2,047 | 1,599 | 6,681 | 5,865 | |||||||||||
Sales volume by nutrient tons (000s)(1) | 648 | 507 | 2,109 | 1,854 | |||||||||||
Average selling price per product ton | $ | 149 | $ | 230 | $ | 179 | $ | 252 | |||||||
Average selling price per nutrient ton(1) | 471 | 724 | 567 | 798 | |||||||||||
Gross margin per product ton | $ | 15 | $ | 57 | $ | 41 | $ | 90 | |||||||
Gross margin per nutrient ton(1) | 48 | 180 | 131 | 283 | |||||||||||
Depreciation and amortization | $ | 72 | $ | 52 | $ | 247 | $ | 192 | |||||||
Unrealized net mark-to-market (gain) loss on natural gas derivatives | $ | (29 | ) | $ | 40 | $ | (81 | ) | $ | 73 |
(1) | Nutrient tons represent the tons of nitrogen within the product tons. |
• | UAN sales volume increased in the fourth quarter of 2016 due to additional volume available for sale from the new UAN capacity at the company's Donaldsonville Nitrogen Complex. During the quarter, customers built UAN inventories in preparation for spring after having delayed purchases earlier in the year. The company also exported a significant amount of UAN during the quarter. |
• | UAN average selling price per ton decreased due to excess global nitrogen supply. Additionally, the company's UAN sales during the quarter included a higher proportion of lower-priced export sales compared to the prior year. |
• | UAN gross margin per ton decreased due to lower average selling prices and a $20 million increase in depreciation and amortization primarily associated with the new Donaldsonville UAN plant, partially offset by a $29 million unrealized net mark-to-market gain on natural gas derivatives in the fourth quarter of 2016 compared to a $40 million unrealized net mark-to-market loss on natural gas derivatives in the fourth quarter of 2015. |
Three months ended December 31, | Twelve months ended December 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(dollars in millions, except per ton amounts) | |||||||||||||||
Net sales | $ | 93 | $ | 115 | $ | 411 | $ | 294 | |||||||
Cost of sales | 93 | 112 | 409 | 291 | |||||||||||
Gross margin | $ | — | $ | 3 | $ | 2 | $ | 3 | |||||||
Gross margin percentage | — | % | 3.0 | % | 0.5 | % | 1.1 | % | |||||||
Sales volume by product tons (000s) | 541 | 495 | 2,151 | 1,290 | |||||||||||
Sales volume by nutrient tons (000s)(1) | 181 | 166 | 726 | 437 | |||||||||||
Average selling price per product ton | $ | 172 | $ | 233 | $ | 191 | $ | 228 | |||||||
Average selling price per nutrient ton(1) | 514 | 693 | 566 | 673 | |||||||||||
Gross margin per product ton | $ | — | $ | 7 | $ | 1 | $ | 2 | |||||||
Gross margin per nutrient ton(1) | — | 20 | 3 | 7 | |||||||||||
Depreciation and amortization | $ | 21 | $ | 22 | $ | 93 | $ | 66 | |||||||
Unrealized net mark-to-market (gain) loss on natural gas derivatives | $ | (3 | ) | $ | 9 | $ | (10 | ) | $ | 16 |
(1) | Nutrient tons represent the tons of nitrogen within the product tons. |
• | AN sales volume was higher compared to the fourth quarter of 2015. Agricultural AN sales in the United Kingdom increased as farmers purchased AN early driven by lower nitrogen prices, improving crop prices and higher European Union support payments. AN sales volumes in North America also increased due to additional production volume of industrial AN at the company's Yazoo City Nitrogen Complex. |
• | AN average selling price per ton decreased primarily due to excess global nitrogen supply. |
• | AN gross margin per ton decreased primarily due to lower selling prices, which were partially offset by a $3 million unrealized net mark-to-market gain on natural gas derivatives in the fourth quarter of 2016 compared to a $9 million unrealized net mark-to-market loss on natural gas derivatives in the fourth quarter of 2015. |
Three months ended December 31, | Twelve months ended December 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(dollars in millions, except per ton amounts) | |||||||||||||||
Net sales | $ | 69 | $ | 63 | $ | 266 | $ | 223 | |||||||
Cost of sales | 57 | 52 | 217 | 162 | |||||||||||
Gross margin | $ | 12 | $ | 11 | $ | 49 | $ | 61 | |||||||
Gross margin percentage | 17.4 | % | 16.8 | % | 18.4 | % | 27.2 | % | |||||||
Sales volume by product tons (000s) | 450 | 364 | 1,654 | 1,108 | |||||||||||
Sales volume by nutrient tons (000s)(1) | 87 | 71 | 317 | 215 | |||||||||||
Average selling price per product ton | $ | 153 | $ | 175 | $ | 161 | $ | 202 | |||||||
Average selling price per nutrient ton(1) | 793 | 899 | 839 | 1,040 | |||||||||||
Gross margin per product ton | $ | 27 | $ | 29 | $ | 30 | $ | 55 | |||||||
Gross margin per nutrient ton(1) | 138 | 151 | 155 | 283 | |||||||||||
Depreciation and amortization | $ | 12 | $ | 9 | $ | 46 | $ | 35 | |||||||
Unrealized net mark-to-market (gain) loss on natural gas derivatives | $ | (6 | ) | $ | — | $ | (17 | ) | $ | — |
(1) | Nutrient tons represent the tons of nitrogen within the product tons. |
• | Other segment volume was higher due primarily to higher year-over-year sales of DEF as the company continues to grow its North American DEF business. |
• | Other segment average selling price per ton decreased due to excess global nitrogen supply. |
• | Other segment gross margin per ton decreased primarily due to lower average selling prices partially offset by a $6 million unrealized net mark-to-market gain on natural gas derivatives in the fourth quarter of 2016. |
Three months ended December 31, | Twelve months ended December 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(in millions, except per share amounts) | |||||||||||||||
Net sales | $ | 867 | $ | 1,115 | $ | 3,685 | $ | 4,308 | |||||||
Cost of sales | 773 | 835 | 2,845 | 2,761 | |||||||||||
Gross margin | 94 | 280 | 840 | 1,547 | |||||||||||
Selling, general and administrative expenses | 33 | 50 | 174 | 170 | |||||||||||
Transaction costs | — | 20 | 179 | 57 | |||||||||||
Other operating—net | 27 | 18 | 208 | 92 | |||||||||||
Total other operating costs and expenses | 60 | 88 | 561 | 319 | |||||||||||
Equity in (losses) earnings of operating affiliates | (134 | ) | (55 | ) | (145 | ) | (35 | ) | |||||||
Operating (loss) earnings | (100 | ) | 137 | 134 | 1,193 | ||||||||||
Interest expense | 70 | 40 | 200 | 133 | |||||||||||
Interest income | (1 | ) | (1 | ) | (5 | ) | (2 | ) | |||||||
Loss on debt extinguishment | 167 | — | 167 | — | |||||||||||
Other non-operating—net | (1 | ) | (1 | ) | (2 | ) | 4 | ||||||||
(Loss) earnings before income taxes and equity in earnings of non-operating affiliates | (335 | ) | 99 | (226 | ) | 1,058 | |||||||||
Income tax (benefit) provision | (47 | ) | 63 | (68 | ) | 396 | |||||||||
Equity in earnings of non-operating affiliates—net of taxes | — | — | — | 72 | |||||||||||
Net (loss) earnings | (288 | ) | 36 | (158 | ) | 734 | |||||||||
Less: Net earnings attributable to noncontrolling interests | 32 | 9 | 119 | 34 | |||||||||||
Net (loss) earnings attributable to common stockholders | $ | (320 | ) | $ | 27 | $ | (277 | ) | $ | 700 | |||||
Net (loss) earnings per share attributable to common stockholders: | |||||||||||||||
Basic | $ | (1.38 | ) | $ | 0.11 | $ | (1.19 | ) | $ | 2.97 | |||||
Diluted | $ | (1.38 | ) | $ | 0.11 | $ | (1.19 | ) | $ | 2.96 | |||||
Weighted-average common shares outstanding: | |||||||||||||||
Basic | 233.1 | 233.1 | 233.1 | 235.3 | |||||||||||
Diluted | 233.1 | 233.8 | 233.1 | 236.1 |
December 31, 2016 | December 31, 2015 | ||||||
(in millions) | |||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 1,164 | $ | 286 | |||
Restricted cash | 5 | 23 | |||||
Accounts receivable—net | 236 | 267 | |||||
Inventories | 339 | 321 | |||||
Prepaid income taxes | 841 | 185 | |||||
Other current assets | 70 | 45 | |||||
Total current assets | 2,655 | 1,127 | |||||
Property, plant and equipment—net | 9,652 | 8,539 | |||||
Investments in affiliates | 139 | 298 | |||||
Goodwill | 2,345 | 2,390 | |||||
Other assets | 340 | 329 | |||||
Total assets | $ | 15,131 | $ | 12,683 | |||
Liabilities and Equity | |||||||
Current liabilities: | |||||||
Accounts payable and accrued expenses | $ | 638 | $ | 918 | |||
Income taxes payable | 1 | 5 | |||||
Customer advances | 42 | 162 | |||||
Other current liabilities | 5 | 130 | |||||
Total current liabilities | 686 | 1,215 | |||||
Long-term debt | 5,778 | 5,537 | |||||
Deferred income taxes | 1,630 | 916 | |||||
Other liabilities | 545 | 628 | |||||
Equity: | |||||||
Stockholders' equity | 3,348 | 4,035 | |||||
Noncontrolling interests | 3,144 | 352 | |||||
Total equity | 6,492 | 4,387 | |||||
Total liabilities and equity | $ | 15,131 | $ | 12,683 |
Three months ended December 31, | Twelve months ended December 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(in millions) | |||||||||||||||
Operating Activities: | |||||||||||||||
Net (loss) earnings | $ | (288 | ) | $ | 36 | $ | (158 | ) | $ | 734 | |||||
Adjustments to reconcile net (loss) earnings to net cash provided by operating activities: | |||||||||||||||
Depreciation and amortization | 203 | 132 | 678 | 480 | |||||||||||
Deferred income taxes | 9 | 84 | 739 | 78 | |||||||||||
Stock-based compensation expense | 4 | 4 | 19 | 17 | |||||||||||
Unrealized net (gain) loss on natural gas and foreign currency derivatives | (91 | ) | 93 | (260 | ) | 163 | |||||||||
Loss on embedded derivative | 1 | — | 23 | — | |||||||||||
Gain on re-measurement of CF Fertilisers UK investment | — | — | — | (94 | ) | ||||||||||
Impairment of equity method investment in PLNL | 134 | 62 | 134 | 62 | |||||||||||
Loss on sale of equity method investments | — | — | — | 43 | |||||||||||
Loss on extinguishment of debt | 167 | — | 167 | — | |||||||||||
Loss on disposal of property, plant and equipment | 2 | 3 | 10 | 21 | |||||||||||
Undistributed earnings of affiliates—net of taxes | 9 | (1 | ) | 9 | (3 | ) | |||||||||
Changes in: | |||||||||||||||
Accounts receivable—net | (37 | ) | (20 | ) | 18 | (4 | ) | ||||||||
Inventories | (3 | ) | 1 | (7 | ) | (71 | ) | ||||||||
Accrued and prepaid income taxes | (11 | ) | (79 | ) | (676 | ) | (148 | ) | |||||||
Accounts payable and accrued expenses | (11 | ) | 10 | (18 | ) | 42 | |||||||||
Customer advances | (45 | ) | (220 | ) | (120 | ) | (164 | ) | |||||||
Other—net | (17 | ) | 28 | 59 | 51 | ||||||||||
Net cash provided by operating activities | 26 | 133 | 617 | 1,207 | |||||||||||
Investing Activities: | |||||||||||||||
Additions to property, plant and equipment | (392 | ) | (678 | ) | (2,211 | ) | (2,469 | ) | |||||||
Proceeds from sale of property, plant and equipment | 6 | 3 | 14 | 12 | |||||||||||
Proceeds from sale of equity method investment | — | — | — | 13 | |||||||||||
Purchase of CF Fertilisers UK, net of cash acquired | — | 2 | — | (552 | ) | ||||||||||
Withdrawals from restricted cash funds | 2 | 3 | 18 | 63 | |||||||||||
Other—net | (2 | ) | (7 | ) | 2 | (43 | ) | ||||||||
Net cash used in investing activities | (386 | ) | (677 | ) | (2,177 | ) | (2,976 | ) | |||||||
Financing Activities: | |||||||||||||||
Proceeds from long-term borrowings | 1,244 | — | 1,244 | 1,000 | |||||||||||
Payments of long-term borrowings | (1,170 | ) | — | (1,170 | ) | — | |||||||||
Proceeds from short-term borrowings | — | — | 150 | 367 | |||||||||||
Payments of short-term borrowings | — | — | (150 | ) | (367 | ) | |||||||||
Payment to CHS related to credit provision | (5 | ) | — | (5 | ) | — | |||||||||
Financing fees | (20 | ) | (19 | ) | (31 | ) | (47 | ) | |||||||
Dividends paid on common stock | (71 | ) | (70 | ) | (280 | ) | (282 | ) | |||||||
Issuance of noncontrolling interest in CFN | — | — | 2,800 | — | |||||||||||
Distributions to noncontrolling interests | (8 | ) | (13 | ) | (119 | ) | (45 | ) | |||||||
Purchases of treasury stock | — | — | — | (556 | ) | ||||||||||
Issuances of common stock under employee stock plans | — | — | — | 8 | |||||||||||
Shares withheld for taxes | — | — | — | (1 | ) | ||||||||||
Net cash (used in) provided by financing activities | (30 | ) | (102 | ) | 2,439 | 77 | |||||||||
Effect of exchange rate changes on cash and cash equivalents | — | (11 | ) | (1 | ) | (19 | ) | ||||||||
(Decrease) increase in cash and cash equivalents | (390 | ) | (657 | ) | 878 | (1,711 | ) | ||||||||
Cash and cash equivalents at beginning of period | 1,554 | 943 | 286 | 1,997 | |||||||||||
Cash and cash equivalents at end of period | $ | 1,164 | $ | 286 | $ | 1,164 | $ | 286 |
Three months ended December 31, | Twelve months ended December 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(in millions) | |||||||||||||||
Tons of product sold (000s) | 4,683 | 3,982 | 16,957 | 13,718 | |||||||||||
Net sales | $ | 867 | $ | 1,115 | $ | 3,685 | $ | 4,308 | |||||||
Net (loss) earnings attributable to common stockholders | $ | (320 | ) | $ | 27 | $ | (277 | ) | $ | 700 | |||||
Interest expense (income)—net | 69 | 39 | 195 | 131 | |||||||||||
Income tax (benefit) provision(1) | (47 | ) | 63 | (68 | ) | 385 | |||||||||
Depreciation and amortization | 203 | 132 | 678 | 480 | |||||||||||
Less: other adjustments | (40 | ) | (7 | ) | (133 | ) | (30 | ) | |||||||
EBITDA | (135 | ) | 254 | 395 | 1,666 | ||||||||||
Net (loss) earnings per ton | $ | (68.33 | ) | $ | 6.78 | $ | (16.34 | ) | $ | 51.03 | |||||
Net (loss) earnings as a percent of net sales | (36.9 | )% | 2.4 | % | (7.5 | )% | 16.2 | % | |||||||
EBITDA per ton | $ | (28.83 | ) | $ | 63.79 | $ | 23.29 | $ | 121.45 | ||||||
EBITDA as a percent of net sales | (15.6 | )% | 22.8 | % | 10.7 | % | 38.7 | % | |||||||
Start-up costs Donaldsonville ammonia | — | — | 18 | — | |||||||||||
Start-up costs Port Neal ammonia and urea | 34 | — | 34 | — | |||||||||||
Expansion project expenses | 14 | 15 | 73 | 51 | |||||||||||
Loss on foreign currency derivatives | 2 | 3 | — | 22 | |||||||||||
Loss on debt extinguishment | 167 | — | 167 | — | |||||||||||
Private Senior Notes amendment arrangement fees | — | — | 2 | — | |||||||||||
Gain on remeasurement of CF Fertilisers UK investment | — | — | — | (94 | ) | ||||||||||
Impairment of equity method investment in PLNL | 134 | 62 | 134 | 62 | |||||||||||
Loss on sale of equity method investments | — | — | — | 43 | |||||||||||
Transaction costs(2) | — | 20 | 179 | 57 | |||||||||||
Unrealized net mark-to-market (gain) loss on natural gas derivatives | (91 | ) | 97 | (260 | ) | 176 | |||||||||
Loss on embedded derivative(3) | 1 | — | 23 | — | |||||||||||
Loss (gain) on foreign currency transactions(4) | 7 | (6 | ) | 93 | (8 | ) | |||||||||
Total adjustments | 268 | 191 | 463 | 309 | |||||||||||
Adjusted EBITDA | $ | 133 | $ | 445 | $ | 858 | $ | 1,975 | |||||||
Adjusted EBITDA per ton | $ | 28.40 | $ | 111.75 | $ | 50.60 | $ | 143.97 | |||||||
Adjusted EBITDA as a percent of net sales | 15.3 | % | 39.9 | % | 23.3 | % | 45.8 | % |
(1) | Includes the tax benefit of $11 million on loss on sale of non-operating equity method investment for the twelve months ended December 31, 2015. |
(2) | Transaction costs include the $150 million termination fee paid by the company to OCI in the second quarter of 2016 as a result of the termination of the combination agreement with OCI and costs of various consulting and legal services associated with the company's proposed combination with certain businesses of OCI and the company's strategic venture with CHS. |
(3) | Represents the loss in 2016 on the embedded derivative included within the terms of the company's strategic venture with CHS. |
(4) | Loss (gain) on foreign currency transactions primarily relates to the unrealized foreign currency exchange rate impact on intercompany debt that has not been permanently invested. |
Three months ended December 31, | Twelve months ended December 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(in millions) | |||||||||||||||
Net (loss) earnings attributable to common stockholders | $ | (320 | ) | $ | 27 | $ | (277 | ) | $ | 700 | |||||
Start-up costs Donaldsonville ammonia | — | — | 18 | — | |||||||||||
Start-up costs Port Neal ammonia and urea | 34 | — | 34 | — | |||||||||||
Expansion project expenses | 14 | 15 | 73 | 51 | |||||||||||
Loss on foreign currency derivatives | 2 | 3 | — | 22 | |||||||||||
Loss on debt extinguishment | 167 | — | 167 | — | |||||||||||
Financing costs related to Private Senior Notes and Senior Secured Notes(1) | 10 | — | 10 | — | |||||||||||
Revolver amendment fees(1) | 4 | — | 6 | — | |||||||||||
Private Senior Notes amendment arrangement fees | — | — | 2 | — | |||||||||||
Gain on remeasurement of CF Fertilisers UK investment | — | — | — | (94 | ) | ||||||||||
Impairment of equity method investment in PLNL | 134 | 62 | 134 | 62 | |||||||||||
Loss on sale of equity method investments | — | — | — | 43 | |||||||||||
Transaction costs(2) | — | 20 | 179 | 57 | |||||||||||
Financing costs related to bridge loan commitment fee(1) | — | — | 28 | 6 | |||||||||||
Unrealized net mark-to-market (gain) loss on natural gas derivatives | (91 | ) | 97 | (260 | ) | 176 | |||||||||
Loss on embedded derivative(3) | 1 | — | 23 | — | |||||||||||
Loss (gain) on foreign currency transactions(4) | 7 | (6 | ) | 93 | (8 | ) | |||||||||
Income tax adjustments(5) | (52 | ) | (50 | ) | (121 | ) | (119 | ) | |||||||
Total adjustments | 230 | 141 | 386 | 196 | |||||||||||
Adjusted net (loss) earnings | $ | (90 | ) | $ | 168 | $ | 109 | $ | 896 |
Three months ended December 31, | Twelve months ended December 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net (loss) earnings per diluted share attributable to common stockholders | $ | (1.38 | ) | $ | 0.11 | $ | (1.19 | ) | $ | 2.96 | |||||
Start-up costs Donaldsonville ammonia | — | — | 0.08 | — | |||||||||||
Start-up costs Port Neal ammonia and urea | 0.14 | — | 0.14 | — | |||||||||||
Expansion project expenses | 0.06 | 0.06 | 0.31 | 0.22 | |||||||||||
Loss on foreign currency derivatives | 0.01 | 0.01 | — | 0.09 | |||||||||||
Loss on debt extinguishment | 0.72 | — | 0.72 | — | |||||||||||
Financing costs related to Private Senior Notes and Senior Secured Notes(1) | 0.04 | — | 0.04 | — | |||||||||||
Revolver amendment fees(1) | 0.02 | — | 0.03 | — | |||||||||||
Private Senior Notes amendment arrangement fees | — | — | 0.01 | — | |||||||||||
Gain on remeasurement of CF Fertilisers UK investment | — | — | — | (0.40 | ) | ||||||||||
Impairment of equity method investment in PLNL | 0.57 | 0.26 | 0.57 | 0.26 | |||||||||||
Loss on sale of equity method investments | — | — | — | 0.18 | |||||||||||
Transaction costs(2) | — | 0.08 | 0.77 | 0.24 | |||||||||||
Financing costs related to bridge loan commitment fee(1) | — | — | 0.12 | 0.02 | |||||||||||
Unrealized net mark-to-market (gain) loss on natural gas derivatives | (0.39 | ) | 0.42 | (1.12 | ) | 0.75 | |||||||||
Loss on embedded derivative(3) | — | — | 0.10 | — | |||||||||||
Loss (gain) on foreign currency transactions(4) | 0.03 | (0.02 | ) | 0.40 | (0.03 | ) | |||||||||
Income tax adjustments(5) | (0.21 | ) | (0.20 | ) | (0.51 | ) | (0.50 | ) | |||||||
Total adjustments | 0.99 | 0.61 | 1.66 | 0.83 | |||||||||||
Adjusted net (loss) earnings per diluted share | $ | (0.39 | ) | $ | 0.72 | $ | 0.47 | $ | 3.79 |
(1) | Not included in the calculation of EBITDA. |
(2) | Transaction costs include the $150 million termination fee paid by CF Holdings to OCI in the second quarter of 2016 as a result of the termination of the combination agreement with OCI and costs of various consulting and legal services associated with the company's proposed combination with certain businesses of OCI and the company's strategic venture with CHS. |
(3) | Represents the loss in 2016 on the embedded derivative included within the terms of the company's strategic venture with CHS. |
(4) | Loss (gain) on foreign currency transactions primarily relates to the unrealized foreign currency exchange rate impact on intercompany debt that has not been permanently invested. |
(5) | Represents the adjustment to the GAAP basis tax provision reflecting the tax impact of the other non-GAAP adjustments. The income tax adjustments for the twelve months ended December 31, 2016 also include the tax impact of certain transaction costs that were capitalized in prior tax periods and that are now deductible as a result of the termination of the combination agreement with OCI. |
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