-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, SOXpE2YwC+3WOpkD8PIIYmZOntYFNAoOv15WRcLiuNRmEyJ4PFmvIPc8H2w45W34 Zjr7MV79zoGiolErYZ9SKg== 0000066895-96-000004.txt : 19960416 0000066895-96-000004.hdr.sgml : 19960416 ACCESSION NUMBER: 0000066895-96-000004 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960331 FILED AS OF DATE: 19960415 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: MISSISSIPPI CHEMICAL CORP /MS/ CENTRAL INDEX KEY: 0000066895 STANDARD INDUSTRIAL CLASSIFICATION: AGRICULTURE CHEMICALS [2870] IRS NUMBER: 640292638 STATE OF INCORPORATION: MS FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-20411 FILM NUMBER: 96546936 BUSINESS ADDRESS: STREET 1: HIGHWAY 49 EAST CITY: YAZOO CITY STATE: MS ZIP: 39194 BUSINESS PHONE: 6017464131 MAIL ADDRESS: STREET 1: P O BOX 388 CITY: YAZOO CITY STATE: MS ZIP: 39194 FORMER COMPANY: FORMER CONFORMED NAME: MISSISSIPPI CHEMICAL CORP DATE OF NAME CHANGE: 19920703 EX-27 1
5 This schedule contains third quarter summary financial information extracted from Mississippi Chemical Corporation fiscal 1996 third quarter Form 10-Q and is qualified in its entirety by reference to such form 10-Q filing. 0000066895 MISSISSIPPI CHEMICAL CORPORATION 1,000 9-MOS JUN-30-1996 MAR-31-1996 52,678 0 26,410 1,200 55,517 139,437 396,514 277,329 330,547 62,194 0 0 0 229 235,308 330,547 304,167 304,903 207,733 245,354 0 200 (1,508) 61,057 23,831 37,226 0 0 0 37,226 1.68 0
10-Q 2 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Mark One) [X] Quarterly Report Pursuant to Section 13 or 15(d) Of The Securities Exchange Act of 1934 For Quarter Ended March 31, 1996 OR [ ] Transition Report Pursuant to Section 13 or 15(d) Of the Securities Exchange Act of 1934 For Quarter Ended March 31, 1996 Commission File Number 2-7803 MISSISSIPPI CHEMICAL CORPORATION Organized in the State of Mississippi Identification No. 64-0292638 P. O. Box 388, Yazoo City, Mississippi 39194 Telephone No. 601+746-4131 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [ x ] No [ ] Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Class Number of Shares Common Stock, $0.01 par value 21,478,450 MISSISSIPPI CHEMICAL CORPORATION AND SUBSIDIARIES INDEX Page Number PART I. FINANCIAL INFORMATION: Item 1.Consolidated Financial Statements Consolidated Statements of Income 3 Three months ended March 31, 1996 and 1995, and Nine months ended March 31, 1996 and 1995 Consolidated Balance Sheets March 31, 1996 and June 30, 1995 4 Consolidated Statements of Shareholders' Equity 5 Fiscal Year Ended June 30, 1995 and Nine months ended March 31, 1996 Consolidated Statements of Cash Flows 6 Nine months ended March 31, 1996 and 1995 Notes to Consolidated Financial Statements 7 - 9 Item 2.Management's Discussion and Analysis of Results of Operations and Financial Condition 10 - 16 PART II. OTHER INFORMATION: Item 6(b).Reports on Form 8-K 17 Signatures 17 MISSISSIPPI CHEMICAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME Three months ended Nine months ended March 31, March 31, ---------------------- --------------------- 1996 1995 1996 1995 -------- -------- -------- -------- (In thousands, except per share data) (S) Net sales $107,740 $114,677 $304,167 $271,141 Operating expenses: Cost of products sold 71,324 73,857 207,733 180,327 Selling 6,899 8,378 19,900 20,407 General and administrative 5,989 4,985 17,721 15,945 -------- -------- -------- -------- 84,212 87,220 245,354 216,679 -------- -------- -------- -------- Operating income 23,528 27,457 58,813 54,462 Other (expense) income: Interest, net 752 (139) 1,508 (688) Other 183 378 736 408 -------- -------- -------- -------- Income before income taxes 24,463 27,696 61,057 54,182 Income tax expense 8,815 10,498 23,831 20,769 -------- -------- -------- -------- Net income $ 15,648 $ 17,198 $ 37,226 $ 33,413 ======== ======== ======== ======== Earnings per share (see Note 2) $ 0.72 $ 0.75 $ 1.68 $ 1.50 ======== ======== ======== ========
[FN] The accompanying notes are an integral part of these financial statements. MISSISSIPPI CHEMICAL CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS ASSETS March 31, June 30, 1996 1995 ---------- --------- (Dollars in thousands) Current assets: Cash and cash equivalents $ 52,678 $ 29,617 Accounts receivable 25,210 30,424 Inventories: Finished products 23,706 19,817 Raw materials and supplies 7,911 6,740 Replacement parts 23,900 23,758 -------- -------- Total inventories 55,517 50,315 Prepaid expenses and other current assets 3,788 3,012 Deferred income taxes 2,244 1,929 -------- -------- Total current assets 139,437 115,297 Investments and other assets: Investments 7,883 4,087 Other 11,123 10,275 -------- -------- Total investments and other assets 19,006 14,362 Properties held for sale 52,919 52,919 Property, plant and equipment, at cost 396,514 384,331 Less accumulated depreciation, depletion and amortization (277,329) (264,694) -------- -------- Net property, plant and equipment 119,185 119,637 -------- -------- $330,547 $302,215 ======== ======== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Long-term debt due within one year $ 121 $ 775 Accounts payable 50,966 31,520 Accrued liabilities 7,523 8,799 Income tax payable 3,584 3,413 -------- -------- Total current liabilities 62,194 44,507 Long-term debt - 2,478 Other long-term liabilities and deferred credits 18,037 15,167 Deferred income taxes 14,779 12,756 Shareholders' equity 235,537 227,307 -------- -------- $330,547 $302,215 ======== ========
[FN] The accompanying notes are an integral part of these financial statements. MISSISSIPPI CHEMICAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY MARCH 31, 1996 Cooperative Additional Capital Retained Common Common Paid-in Equity Earnings Treasury Stock Stock Capital Credits (Deficit) Stock Total ----------- -------- --------- ------ -------- -------- ------ (Dollars in thousands) Balances, July 1, 1994 $28,392 $ - $ 66,848 $62,352 $(14,636) $ $142,956 Conversion of cooperative stock (26,375) 155 26,220 - - - - Conversion of capital equity credits and allocated surplus accounts - 41 42,723 (62,352) 19,588 - - Redemptions (2,017) (1) (4,095) - - - (6,113) ------- ------- -------- ------- ------- ------- -------- Subtotal - 195 131,696 - 4,952 - 136,843 Stock issued - 34 46,636 - - - 46,670 Cash dividends paid - - - - (3,662) - (3,662) Net income - - - - 52,230 - 52,230 Treasury stock purchased - - - - - (4,774) (4,774) -------- ------- -------- ------- ------- ------- ------- Balances, June 30, 1995 - 229 178,332 - 53,520 (4,774) 227,307 Net income - - - - 37,226 - 37,226 Cash dividends paid - - - - (5,736) - (5,736) Shares reissued - - 32 - - 82 114 Treasury stock purchased - - - - - (23,374) (23,374) -------- ------- -------- -------- ------- ------- -------- Balances, March 31, 1996 $ - $ 229 $178,364 $ - $85,010 $(28,066) $235,537 ======== ======= ======== ======== ======= ======== ======== The accompanying notes are an integral part of these financial statements.
MISSISSIPPI CHEMICAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS Nine months ended March 31, 1996 1995 --------- -------- (Dollars in thousands) Cash flows from operating activities: Net income $ 37,226 $ 33,413 Reconciliation of net income to net cash provided by operating activities: Net change in operating assets and liabilities 18,080 (7,437) Depreciation, depletion and amortization 13,224 11,894 Deferred income taxes 1,708 4,781 Other 171 (633) -------- --------- Net cash provided by operating activities 70,409 42,018 Cash flows from investing activities: Purchase of property, plant and equipment (11,995) (14,158) Proceeds received from option 2,000 3,000 Investment in Farmland MissChem, Ltd. (4,262) (517) Payments for newsprint contract obligations - (8,751) Other (851) 1,310 -------- --------- Net cash used by investing activities (15,108) (19,116) Cash flows from financing activities: Debt payments (3,129) (112,126) Debt proceeds - 54,625 Cash dividends paid (5,736) (1,829) Purchase of treasury stock (23,375) - Payment of cash patronage - (14,756) Proceeds from issuance of common stock - 47,401 Conversion of common stock - (5,447) -------- -------- Net cash used by financing activities (32,240) (32,132) -------- -------- Net increase (decrease) in cash and cash equivalents 23,061 (9,230) Cash and cash equivalents - beginning of period 29,617 23,219 -------- -------- Cash and cash equivalents - end of period $ 52,678 $ 13,989 ======== ======== The accompanying notes are an integral part of these financial statements.
MISSISSIPPI CHEMICAL CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 - INTERIM FINANCIAL STATEMENTS The accompanying consolidated financial statements of Mississippi Chemical Corporation and its subsidiaries ("the Company") have been prepared by the Company, without audit. In the opinion of the Company's management, the financial statements reflect all adjustments necessary to present fairly the results of operations for the three-month and the nine-month periods ended March 31, 1996 and 1995, the Company's financial position at March 31, 1996 and June 30, 1995, the cash flows for the nine-month periods ended March 31, 1996 and 1995, and the consolidated statements of shareholders' equity as of March 31, 1996. These adjustments are of a normal recurring nature, which are, in the opinion of management, necessary for a fair presentation of the financial position and results of operations for the interim periods. Certain notes and other information have been condensed or omitted from the interim financial statements presented in the Quarterly Report on Form 10-Q. Therefore, these financial statements should be read in conjunction with the Company's 1995 Form 10-K and the consolidated financial statements and notes thereto included in the Company's June 30, 1995, audited financial statements. Due to the seasonal nature of the Company's business, the results of operations for the period ended March 31, 1996, are not necessarily indicative of the operating results for the full fiscal year. NOTE 2 - EARNINGS PER SHARE The number of shares used in the earnings per share computation are the weighted average number of common shares outstanding plus dilutive common share equivalents as follows: Three months ended Nine months ended March 31, March 31, 1996 1995 1996 1995 ---------- ---------- ---------- ----------- Weighted average common shares outstanding, net of treasury shares 21,813,450 22,898,253 22,066,391 22,198,875 Common stock equivalents for employee stock options 66,954 35,689 67,731 26,543 ---------- ---------- ---------- ---------- 21,880,404 22,933,942 22,134,122 22,225,418 ========== ========== ========== ==========
NOTE 3 - COMMITMENTS AND CONTINGENCIES During 1990, the Company entered into an agreement granting a third party the exclusive option, for a period of four years, to purchase the Company's undeveloped phosphate rock property of approximately 12,000 acres in Hardee County, Florida. As of July 12, 1994, the Company and the option holder entered into new agreements with respect to this property whereby the Company conveyed a portion of the property to the third party and granted to the third party the exclusive option to purchase the remaining portion of the property. In addition, the Company was granted a put option whereby the Company has the right and option to sell the remaining portion of the property to the third party if the third party does not exercise its option to purchase the remaining property and was granted an exclusive option to repurchase the previously conveyed portion in the event the third party does not exercise its option and the Company does not exercise its put option. The third party's option will expire on January 16, 1998. The Company's put option will expire six months after the third party's option expires, and its repurchase option will expire one year after the Company's put option expires. These properties are classified as property held for sale at March 31, 1996 and June 30, 1995. The Company has entered into a 50-50 joint venture ("Farmland MissChem, Ltd.") with Farmland Industries, Inc. to construct and operate an 1,850 metric- ton-per-day anhydrous ammonia plant to be located in the La Brea Industrial Estate in Trinidad. In late January 1996, notice to proceed with the construction was given to the contractor, M.W. Kellogg Company. The project is expected to cost approximately $330 million. Startup of the facility is scheduled for early 1998. The Company intends to use the majority of its portion of the production from the new facility, expected to be in excess of 350,000 tons per year, primarily as a raw material for upgrading into finished fertilizer products at its existing facilities. At March 31, 1996, the Company had outstanding commitments to various customers for the sale of approximately 19,000 tons of nitrogen solutions. These customers have prepaid for this tonnage, and at March 31, the Company had recorded a liability on its balance sheet related to these commitments. NOTE 4 - CHANGE IN ACCOUNTING PRINCIPLE Effective July 1, 1995, the Company changed its method of depreciating newly acquired long-lived assets from the declining balance method to the straight line method. This change in accounting principle did not have a material effect on the Company's financial statements for the three month or the nine month periods ended March 31, 1996. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION The following discussion and analysis should be read in conjunction with the attached consolidated financial statements and notes thereto, and with the Company's audited financial statements and notes thereto for the fiscal year ended June 30, 1995. The usage of fertilizer in the Company's trade territory is highly seasonal, and the Company's quarterly results reflect the fact that in the Company's markets significantly more fertilizer is purchased in the spring. Significant portions of the Company's net sales and operating income are generated in the last four months of the Company's fiscal year (March through June). Since interim period operating results reflect the seasonal nature of the Company's business, they are not indicative of results expected for the full fiscal year. In addition, quarterly results can vary significantly from year to year primarily as a result of weather-related shifts in planting schedules and purchase patterns. The Company incurs substantial expenditures for fixed costs throughout the year and substantial expenditures for inventory in advance of the spring planting season. The Company's results of operations for the nine month period ended March 31, 1996, were favorably impacted by increased sales volumes for nitrogen fertilizers due to strong demand in the fall and a carryover effect caused by slow product movement resulting from adverse weather conditions in May and June of 1995. Also during the current year, a favorable worldwide supply/demand balance for nitrogen and DAP fertilizers caused sales prices to increase. Prices for natural gas, a significant raw material for the production of nitrogen fertilizers, have risen significantly since December 1995, which adversely impacted the Company's results in the third quarter of the current year. Although natural gas prices remain high, the outlook for the remainder of the fiscal year is favorable. Higher commodity prices, due to record low grain inventories, have spurred an expected increase in domestic planted acres, which should translate into an increased application of fertilizers. In May 1995, the Board of Directors authorized the purchase of up to 1,500,000 shares of the Company's common stock in the open market or in privately negotiated transactions. As of March 31, 1996, the Company had repurchased 1,425,000 shares pursuant to that authorization. On March 29, 1996, the Board of Directors authorized the Company to repurchase up to 1,500,000 additional shares of the Company's common stock in open market or privately negotiated transactions. RESULTS OF OPERATIONS Following are summaries of the Company's sales results by product categories: Three months ended Nine months ended March 31, March 31, -------------------- -------------------- 1996 1995 1996 1995 --------- -------- -------- --------- (in thousands) Net Sales: Nitrogen $ 65,178 $ 76,349 $180,021 $168,699 DAP 33,855 29,404 102,851 82,391 Potash 8,218 8,334 19,872 18,504 Other 489 590 1,423 1,547 -------- -------- -------- -------- Net Sales $107,740 $114,677 $304,167 $271,141 ======== ======== ======== ======== Three months ended Nine months ended March 31, March 31, ------------------ ------------------ 1996 1995 1996 1995 -------- ------- ------- ------- (in thousands) Tons Sold: Nitrogen 449 525 1,292 1,279 DAP 158 175 540 519 Potash 113 108 280 244 Three months ended Nine months ended March 31, March 31, ------------------ ------------------ 1996 1995 1996 1995 -------- ------- ------- ------ Average Price Per Ton: Nitrogen $ 145 $ 145 $ 139 $ 132 DAP $ 214 $ 168 $ 191 $ 159 Potash $ 73 $ 77 $ 71 $ 76
NET SALES. Net sales decreased 6.0% to $107.7 million for the quarter ended March 31, 1996, from $114.7 million for the quarter ended March 31, 1995, primarily as a result of decreased sales volumes for nitrogen fertilizers and DAP, partially offset by higher sales prices for DAP. Nitrogen fertilizer sales decreased 14.6% largely as a result of a decrease in tons sold. Ammonium nitrate sales volumes were lower during the current year quarter due to the absence of tonnage obtained through a contract with Air Products and Chemicals, Inc. which is no longer in effect. Ammonium nitrate and urea prices were higher during the current period; however, the average nitrogen price was unchanged due to a product mix that included a higher percentage of nitrogen solutions tons than in the prior year quarter. Sales of DAP increased 15.1% as a result of a 27.0% increase in the average price per ton partially offset by a 9.4% decrease in tons sold. Potash sales decreased 1.4% as a result of a 5.5% decrease in the average price per ton partially offset by a 4.3% increase in tons sold. For the nine months ended March 31, net sales increased 12.2% to $304.2 million in 1996 from $271.1 million in 1995, primarily as a result of increased sales prices for nitrogen and DAP fertilizers and higher sales volumes for all major product groups. Nitrogen fertilizer sales increased 6.7% as a result of a 5.6% increase in the average price per ton and a 1.0% increase in tons sold. Sales of DAP increased 24.8% as a result of a 20.1% increase in the average price per ton and a 4.0% increase in tons sold. Potash sales increased 7.4% as a result of a 14.6% increase in tons sold partially offset by a 6.3% decrease in the average price per ton. COST OF PRODUCTS SOLD. Cost of products sold decreased to $71.3 million for the three months ended March 31, 1996, from $73.9 million for three months ended March 31, 1995. As a percentage of net sales, cost of products sold increased to 66.2% from 64.4%. For the nine months ended March 31, cost of products sold increased to $207.7 million in 1996 from $180.3 million in 1995. As a percentage of net sales, cost of products sold increased to 68.3% from 66.5%. The increases in cost of products sold, as a percentage of net sales, for both the three month period and the nine month period reflect an increase in the cost per ton for nitrogen fertilizers and DAP partially offset by higher sales prices for DAP and nitrogen products. For the three months ended March 31, 1996, nitrogen fertilizer cost per ton increased primarily as a result of increased costs for natural gas. This increase was partially offset by reduced purchases of ammonia during the current year quarter. For the nine month period ended March 31, 1996, nitrogen fertilizer cost per ton increased due to higher natural gas costs, increased purchases of ammonia used as a raw material and upgraded to other nitrogen fertilizer products and higher maintenance and labor costs. Maintenance and labor costs were higher due to a scheduled biennial maintenance turnaround at the Company's Yazoo City facility which began in late September and was completed in October. Purchases of ammonia also increased as a result of the scheduled turnaround which reduced supplies of internally produced ammonia. For the three month and the nine month periods, DAP costs per ton increased as a result of higher raw material costs, primarily for phosphate rock. Phosphate rock costs increased due to the Company's phosphate rock supply contract which bases the price of this raw material on the phosphate rock costs incurred by certain domestic phosphate producers and the financial performance of the Company's phosphate operations. Potash costs per ton did not change significantly for the three month period or the nine month period ended March 31, 1996. SELLING EXPENSES. Selling expenses decreased to $6.9 million for the three months ended March 31, 1996, from $8.4 million for the three months ended March 31, 1995. As a percentage of net sales, selling expenses decreased to 6.4% for the three months ended March 31, 1996, from 7.3% for the three months ended March 31, 1995. This decrease was the result of increased sales prices for ammonium nitrate, urea and DAP and lower delivery costs during the current quarter due to a product mix that included a lower percentage of tons sold on a delivered basis. For the nine months ended March 31, selling expenses decreased to $19.9 million in 1996 from $20.4 million in 1995. As a percentage of net sales, selling expenses decreased to 6.5% in 1996 from 7.5% in 1995. This decrease was the result of increased sales prices for nitrogen and DAP and a change in product mix partially offset by higher storage costs during the current year period. GENERAL AND ADMINISTRATIVE EXPENSES. General and administrative expenses increased to $6.0 million for the three months ended March 31, 1996, from $5.0 million for the three months ended March 31, 1995. This increase was primarily the result of increased advertising expense and franchise taxes during the current year quarter, and the recovery of a bad debt during the prior year quarter. As a percentage of net sales, general and administrative expenses increased to 5.6% from 4.3%. For the nine months ended March 31, general and administrative expenses increased to $17.7 million in 1996 from $15.9 million in 1995. This increase was the result of increased franchise taxes, allowance for bad debts, sales advertising, and a decrease in service fees received from a former subsidiary which reduced the Company's general and administrative expenses in the prior year. As a percentage of net sales, general and administrative expenses decreased to 5.8% during fiscal 1996 from 5.9% during fiscal 1995. OPERATING INCOME. As a result of the above factors, operating income decreased to $23.5 million for the three months ended March 31, 1996, from $27.5 million for the three months ended March 31, 1995, a 14.3% decrease. For the nine months ended March 31, operating income increased to $58.8 million in 1996 from $54.5 million in 1995, an 8.0% increase. INTEREST, NET. For the quarter ended March 31, 1996, net interest income was $752,000 compared to net interest expense of $139,000 for the quarter ended March 31, 1995. For the nine months ended March 31, 1996, net interest income was $1,508,000 compared to net interest expense of $688,000 for the nine months ended March 31, 1995. These changes primarily reflect lower interest expense incurred during the current year periods resulting from lower levels of borrowings. The Company repaid most of its debt during the prior fiscal year from the proceeds of an initial stock offering in August, 1994. The Company also experienced higher interest income during the current year periods due to increased levels of investments and higher rates on these investments during the nine month period ended March 31, 1996. INCOME TAX EXPENSE. Income tax expense decreased to $8.8 million for the three months ended March 31, 1996, from $10.5 million for the three months ended March 31, 1995. For the nine months ended March 31, income tax expense increased to $23.8 million in 1996 from $20.8 million in 1995. These changes are the result of changes in earnings during the three month and the nine month periods ending March 31, 1996. NET INCOME. As a result of the foregoing, net income decreased to $15.6 million for the three months ended March 31, 1996, from $17.2 million for the three months ended March 31, 1995. For the nine months ended March 31, net income increased to $37.2 million in 1996 from $33.4 million in 1995. LIQUIDITY AND CAPITAL RESOURCES At March 31, 1996, the Company had cash and cash equivalents of $52.7 million, compared to $29.6 million at June 30, 1995, an increase of $23.1 million. OPERATING ACTIVITIES. For the nine months ended March 31, 1996 and 1995, net cash provided by operating activities was $70.4 million and $42.0 million, respectively. INVESTING ACTIVITIES. Net cash used by investing activities was $15.1 million for the nine months ended March 31, 1996, and $19.1 million for the nine months ended March 31, 1995, primarily reflecting capital expenditures in those periods partially offset by the receipt of option payments relating to the Company's Florida phosphate rock properties. The current year period also includes $4.3 million related to the Company's investment in Farmland MissChem, Limited. The prior year period also includes an $8.8 million payment made to a former subsidiary to terminate a newsprint purchase contract. Capital expenditures were $12.0 million during the nine months ended March 31, 1996. These expenditures were for normal improvements and modifications to the Company's facilities. FINANCING ACTIVITIES. Net cash used by financing activities was $32.2 million for the nine months ended March 31, 1996, and $32.1 million for the nine months ended March 31, 1995. During the current year, the amounts used by financing activities included $23.4 million for the purchase of treasury stock and $5.7 million in cash dividends. The Company also had debt payments of $3.1 million which included $2.4 million in prepayments. In August 1994, the Company received $47.4 million in proceeds from a stock offering which were subsequently used to prepay a portion of the Company's long-term debt. Also during the prior year, the Company paid $5.4 million to its shareholders related to the reorganization of the Company from a cooperative to a regular business corporation. In addition, the Company paid $14.8 million in cash patronage refunds related to fiscal 1994, when the Company operated as a cooperative. The Company paid $1.8 million in cash dividends during fiscal 1995. The Company and its subsidiaries have commitments from various banks for short-term borrowings up to $20.0 million, which includes $15.0 million from NationsBank Corporation. At March 31, 1996 and 1995, there were no short-term borrowings outstanding on these commitments. In addition to its short-term lines, the Company also has a $50.0 million long-term revolving credit facility with NationsBank that bears interest at the prime rate or for fixed periods at interest rates related to the London Interbank Offered Rates or U.S. Treasury notes. At March 31, 1996, there was no balance outstanding on this facility. The amounts borrowed under the Company's credit lines vary based on the Company's seasonal requirements. The Company had no outstanding borrowings under either the short-term line or the revolving credit facility during the nine months ended March 31, 1996. The Company is currently in the process of completing documentation for a $125 million credit facility with NationsBank as agent which would involve syndication with numerous other commercial banks. It is anticipated that this facility will be completed in late April and will replace the Company's present lines of credit with NationsBank. The Company believes that existing cash, cash generated from operations, and current and anticipated lines of credit will be sufficient to satisfy its financing needs for the foreseeable future. PART II - OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K. (a) Exhibits filed as part of this report are listed below. SEC Exhibit Reference No. Description 27 Financial Data Schedule. (b) No reports on Form 8-K have been filed during the quarter for which this report is filed. SIGNATURES Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. MISSISSIPPI CHEMICAL CORPORATION Date: April 15, 1996 /s/ Timothy A. Dawson --------------- ----------------------------------------- Timothy A. Dawson Vice President - Finance Date: April 15, 1996 /s/ Rosalyn B. Glascoe --------------- ----------------------------------------- Rosalyn B. Glascoe -----END PRIVACY-ENHANCED MESSAGE-----