2024 Q1 Form 10-K Financial Statement

#000161803424000004 Filed on February 22, 2024

View on sec.gov

Income Statement

Concept 2024 Q1 2023 Q4 2023
Revenue $2.679B $3.150B $13.70B
YoY Change -25.66% -29.72% -28.39%
Cost Of Revenue $2.280B $2.590B $11.49B
YoY Change -22.28% -26.27% -14.09%
Gross Profit $399.2M $559.5M $2.211B
YoY Change -40.45% -42.22% -61.59%
Gross Profit Margin 14.9% 17.76% 16.14%
Selling, General & Admin $106.8M $123.0M $500.5M
YoY Change -16.37% -7.45% 0.5%
% of Gross Profit 26.75% 21.98% 22.64%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $241.1M $257.7M $960.6M
YoY Change 9.59% 10.6% 2.86%
% of Gross Profit 60.4% 46.06% 43.45%
Operating Expenses $106.8M $281.0M $500.5M
YoY Change -16.37% 50.43% 0.5%
Operating Profit $172.9M $278.5M $1.338B
YoY Change -68.25% -64.37% -72.04%
Interest Expense -$148.3M $56.10M $189.0M
YoY Change -1539.81% -1293.62% 11.97%
% of Operating Profit -85.77% 20.14% 14.12%
Other Income/Expense, Net $600.0K -$10.70M -$76.80M
YoY Change -106.74% -42.78% -25.07%
Pretax Income $25.20M $323.9M $1.326B
YoY Change -95.38% -52.17% -71.44%
Income Tax $6.200M -$43.80M $177.0M
% Of Pretax Income 24.6% -13.52% 13.35%
Net Earnings $45.20M $365.3M $1.165B
YoY Change -89.6% -30.18% -67.49%
Net Earnings / Revenue 1.69% 11.6% 8.51%
Basic Earnings Per Share $0.14 $3.52
Diluted Earnings Per Share $0.14 $1.12 $3.50
COMMON SHARES
Basic Shares Outstanding 321.7M shares 326.8M shares 331.3M shares
Diluted Shares Outstanding 323.5M shares 333.2M shares

Balance Sheet

Concept 2024 Q1 2023 Q4 2023
SHORT-TERM ASSETS
Cash & Short-Term Investments $336.7M $348.8M $348.8M
YoY Change -27.56% -52.57% -52.57%
Cash & Equivalents $336.7M $348.8M $348.8M
Short-Term Investments
Other Short-Term Assets $502.9M $603.8M $334.5M
YoY Change -21.7% 4.43% -13.97%
Inventory $2.603B $2.523B $2.523B
Prepaid Expenses $231.9M $284.3M
Receivables $1.213B $1.269B $1.269B
Other Receivables $259.5M $269.3M $269.3M
Total Short-Term Assets $4.655B $4.745B $4.745B
YoY Change -20.47% -27.63% -27.63%
LONG-TERM ASSETS
Property, Plant & Equipment $13.46B $13.59B $13.82B
YoY Change 5.26% 7.15% 7.42%
Goodwill $1.118B $1.139B
YoY Change -0.07% 2.0%
Intangibles
YoY Change
Long-Term Investments $932.0M $909.0M $1.618B
YoY Change 5.93% 2.61% 4.23%
Other Assets $1.586B $1.576B $1.695B
YoY Change 9.22% 12.85% 33.11%
Total Long-Term Assets $18.22B $18.29B $18.29B
YoY Change 7.14% 8.67% 8.67%
TOTAL ASSETS
Total Short-Term Assets $4.655B $4.745B $4.745B
Total Long-Term Assets $18.22B $18.29B $18.29B
Total Assets $22.87B $23.03B $23.03B
YoY Change 0.07% -1.51% -1.51%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $850.4M $1.167B $1.567B
YoY Change -17.2% -9.72% -23.34%
Accrued Expenses $1.571B $1.777B $947.9M
YoY Change -10.83% -22.05% -15.02%
Deferred Revenue $234.5M $261.8M
YoY Change -57.58% -64.81%
Short-Term Debt $1.204B $399.7M $399.7M
YoY Change 40.85% 77.72% 77.72%
Long-Term Debt Due $128.7M $130.1M $130.1M
YoY Change -86.87% -86.8% -86.8%
Total Short-Term Liabilities $4.020B $3.874B $3.874B
YoY Change -22.2% -30.0% -30.0%
LONG-TERM LIABILITIES
Long-Term Debt $3.222B $3.232B $3.232B
YoY Change 33.74% 33.99% 33.99%
Other Long-Term Liabilities $2.428B $2.429B $2.429B
YoY Change 9.76% 8.64% 8.64%
Total Long-Term Liabilities $2.428B $2.429B $5.661B
YoY Change 9.76% 8.64% 21.79%
TOTAL LIABILITIES
Total Short-Term Liabilities $4.020B $3.874B $3.874B
Total Long-Term Liabilities $2.428B $2.429B $5.661B
Total Liabilities $6.448B $6.303B $10.74B
YoY Change -12.62% -18.88% -5.2%
SHAREHOLDERS EQUITY
Retained Earnings $14.11B $14.24B
YoY Change 0.8% 0.27%
Common Stock $3.200M $3.200M
YoY Change -3.03% -5.88%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $12.02B $12.29B $12.29B
YoY Change
Total Liabilities & Shareholders Equity $22.87B $23.03B $23.03B
YoY Change 0.07% -1.51% -1.51%

Cashflow Statement

Concept 2024 Q1 2023 Q4 2023
OPERATING ACTIVITIES
Net Income $45.20M $365.3M $1.165B
YoY Change -89.6% -30.18% -67.49%
Depreciation, Depletion And Amortization $241.1M $257.7M $960.6M
YoY Change 9.59% 10.6% 2.86%
Cash From Operating Activities -$80.00M $538.1M $2.407B
YoY Change -153.69% -43.7% -38.84%
INVESTING ACTIVITIES
Capital Expenditures $383.0M $358.9M $1.402B
YoY Change 19.13% 5.4% 12.43%
Acquisitions
YoY Change
Other Investing Activities -$100.0K -$3.300M $500.0K
YoY Change -102.56% 26.92% -106.94%
Cash From Investing Activities -$387.8M -$362.2M -$1.317B
YoY Change 75.16% 5.57% 4.57%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $756.0M
YoY Change -54.6%
Debt Paid & Issued, Net $15.40M $995.3M
YoY Change 2.67% 63.08%
Cash From Financing Activities $457.9M -410.7M -$1.481B
YoY Change -319.09% -28.32% -44.73%
NET CHANGE
Cash From Operating Activities -$80.00M 538.1M $2.407B
Cash From Investing Activities -$387.8M -362.2M -$1.317B
Cash From Financing Activities $457.9M -410.7M -$1.481B
Net Change In Cash -$13.70M -234.8M -$393.3M
YoY Change -95.06% -692.93% 1121.43%
FREE CASH FLOW
Cash From Operating Activities -$80.00M $538.1M $2.407B
Capital Expenditures $383.0M $358.9M $1.402B
Free Cash Flow -$463.0M $179.2M $1.005B
YoY Change 168.41% -70.87% -62.63%

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ORGANIZATION AND NATURE OF BUSINESS<div style="margin-top:9pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Mosaic Company (“</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Mosaic</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">,” and, with its consolidated subsidiaries, “</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">we</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">,” “</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">us</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">,” “</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">our</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">,” or the “</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Company</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">”) produces and markets concentrated phosphate and potash crop nutrients. We conduct our business through wholly- and majority-owned subsidiaries and businesses in which we own less than a majority or a noncontrolling interest, including consolidated variable interest entities and investments accounted for by the equity method.</span></div><div style="margin-top:9pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We are organized into the following business segments:</span></div><div style="margin-top:6pt;padding-left:36pt;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.5pt">Our </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Phosphates</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> business segment owns and operates mines and production facilities in Florida which produce concentrated phosphate crop nutrients and phosphate-based animal feed ingredients, and processing plants in Louisiana which produce concentrated phosphate crop nutrients. We have a 75% economic interest in the Miski Mayo Phosphate Mine in Peru. These results are consolidated in the Phosphates segment. The Phosphates segment also includes our 25% interest in the Ma’aden Wa’ad Al Shamal Phosphate Company (the “</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">MWSPC</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">”), a joint venture to develop, own and operate integrated phosphate production facilities in the Kingdom of Saudi Arabia. We market approximately 25% of the MWSPC phosphate production. We recognize our equity in the net earnings or losses relating to MWSPC on a one-quarter lag in our Consolidated Statements of Earnings.</span></div><div style="margin-top:6pt;padding-left:36pt;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.5pt">Our </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Potash</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> business segment owns and operates potash mines and production facilities in Canada and the U.S. which produce potash-based crop nutrients, animal feed ingredients and industrial products. Potash sales include domestic and international sales. We are a member of Canpotex, Limited (“</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Canpotex</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">”), an export association of Canadian potash producers through which we sell our Canadian potash outside the U.S. and Canada.</span></div><div style="margin-top:6pt;padding-left:36pt;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.5pt">Our </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Mosaic Fertilizantes</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> business segment includes five Brazilian phosphate rock mines, four phosphate chemical plants and a potash mine in Brazil. The segment also includes our distribution business in South America, which consists of sales offices, crop nutrient blending and bagging facilities, port terminals and warehouses in Brazil and Paraguay. We also have a majority interest in Fospar S.A., which owns and operates a single superphosphate granulation plant and a deep-water port and throughput warehouse terminal facility in Brazil.</span></div><div style="margin-top:9pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Intersegment eliminations, unrealized mark-to-market gains/losses on derivatives, debt expenses, and the results of the China and India distribution businesses are included within Corporate, Eliminations and Other.</span></div>
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<div style="margin-top:9pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Accounting Estimates</span></div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Preparation of the Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of net sales and expenses during the reporting periods. The most significant estimates made by management relate to the recoverability of non-current assets including goodwill, the useful lives and net realizable values of long-lived assets, environmental and reclamation liabilities, including asset retirement obligations (“</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">ARO</span>”), and income tax-related accounts, including the valuation allowance against deferred income tax assets. Actual results could differ from these estimates
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<div style="margin-top:9pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Concentration of Credit Risk</span></div><div style="margin-top:9pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In the U.S., we sell our products to manufacturers, distributors and retailers, primarily in the Midwest and Southeast. Internationally, our potash products are sold primarily through Canpotex, an export association. A concentration of credit risk arises from our sales and accounts receivable associated with the international sales of potash product through Canpotex. We consider our concentration risk related to the Canpotex receivable to be mitigated by their credit policy, which requires the underlying receivables to be substantially insured or secured by letters of credit. As of December 31, 2023 and 2022, there were $193.1 million and $244.4 million, respectively, of trade accounts receivable due from Canpotex. During 2023, 2022 and 2021, sales to Canpotex were $1.3 billion, $3.0 billion and $1.1 billion, respectively.</span></div>
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