<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains third quarter summary financial information extracted
from Mississippi Chemical Corporation fiscal 1995 third quarter Form 10-Q and is
qualified in its entirety by reference to such Form 10-Q filing.
</LEGEND>
<CIK> 0000066895
<NAME> MISSISSIPPI CHEMICAL CORP
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-30-1995
<PERIOD-END> MAR-31-1995
<CASH> 13,989
<SECURITIES> 0
<RECEIVABLES> 36,124
<ALLOWANCES> (500)
<INVENTORY> 51,358
<CURRENT-ASSETS> 117,238
<PP&E> 378,818
<DEPRECIATION> (263,018)
<TOTAL-ASSETS> 304,237
<CURRENT-LIABILITIES> 57,628
<BONDS> 0
<COMMON> 229
0
0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 304,237
<SALES> 114,677
<TOTAL-REVENUES> 114,677
<CGS> 73,857
<TOTAL-COSTS> 87,220
<OTHER-EXPENSES> 378
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (139)
<INCOME-PRETAX> 27,696
<INCOME-TAX> 10,498
<INCOME-CONTINUING> 17,198
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 17,198
<EPS-PRIMARY> 0.75
<EPS-DILUTED> 0
</TABLE>
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, 1995
OR
[ ] Transition Report Pursuant to Section 13 or 15(d)
Of the Securities Exchange Act of 1934
For Quarter Ended March 31, 1995
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 22,898,253
<PAGE>
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,
1995 and 1994, and Nine months ended
March 31, 1995 and 1994
Consolidated Balance Sheet 4
March 31, 1995 and June 30, 1994
Consolidated Statements of Stockholders' Equity 5
Fiscal Year Ended June 30, 1994
and Nine months ended March 31, 1995
Consolidated Statements of Cash Flows 6
Nine months ended March 31,
1995 and 1994
Notes to Consolidated Financial Statements 7 - 10
Item 2. Management's Discussion and Analysis
of Results of Operations and
Financial Condition 11 - 18
PART II. OTHER INFORMATION:
Item 6(b). Reports on Form 8-K 19
Signatures 19
<PAGE>
<TABLE>
MISSISSIPPI CHEMICAL CORPORATION
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
Three months ended Nine months ended
March 31, March 31,
------------------ -----------------
1995 1994 1995 1994
(In thousands, except per share data)
<CAPTION>
<S> <C> <C> <C> <C>
Net sales $114,677 $104,158 $271,141 $210,483
Operating expenses:
Cost of products sold 73,857 70,421 180,327 153,285
Provision for closure
of gypsum disposal
area - 5,922 - 5,922
Selling 8,378 9,565 20,407 20,600
General and
administrative 4,985 6,586 15,945 12,985
-------- -------- -------- --------
87,220 92,494 216,679 192,792
-------- -------- -------- --------
Operating income 27,457 11,664 54,462 17,691
Other (expense) income:
Interest, net (139) (760) (688) (3,083)
Other 378 223 408 389
-------- -------- ------- --------
Income from continuing
operations before
income taxes and
cumulative effect of
change in accounting
principle 27,696 11,127 54,182 14,997
Income tax expense 10,498 1,660 20,769 3,071
-------- -------- ------- -------
Income from continuing
operations before
cumulative effect of
change in accounting
principle 17,198 9,467 33,413 11,926
Discontinued operations:
Income (loss) from
discontinued
operations (less
applicable income
tax benefit of
$8,086 for the nine
months ended
March 31, 1994, and
$3,020 for the
three months ended
March 31, 1994) - (5,083) - 2,783
Cumulative effect to
July 1, 1993, of
change in accounting
for income taxes - - - (6,149)
-------- -------- -------- --------
Net income $ 17,198 $ 4,384 $ 33,413 $ 8,560
======== ======== ======== ========
Earnings per share
(see Note 2) $ 0.75 $ 1.50
======== ========
<FN>
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
<TABLE>
MISSISSIPPI CHEMICAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
March 31, June 30,
1995 1994
--------- --------
<S> (Dollars in thousands)
Current assets: <C> <C>
Cash and cash equivalents $ 13,989 $ 23,219
Accounts receivable 36,124 28,659
Inventories:
Finished products 21,783 7,518
Raw materials and supplies 6,454 2,851
Replacement parts 23,121 23,621
-------- --------
Total inventories 51,358 33,990
Prepaid expenses and other
current assets 4,665 3,981
Deferred income tax benefit 11,102 9,682
-------- --------
Total current assets 117,238 99,531
Investments and other assets:
National Bank for Cooperatives 6,189 7,441
Other 11,091 9,813
--------- --------
Total investments and
other assets 17,280 17,254
Properties held for sale 52,919 66,928
Property, plant and equipment, at cost 378,818 366,992
Less accumulated depreciation,
depletion and amortization (262,018) (252,275)
--------- ---------
Net property, plant and equipment 116,800 114,717
--------- ---------
$ 304,237 $ 298,430
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
<S> <C> <C>
Current liabilities:
Long-term debt due within one year $ 7,153 $ 2,948
Notes payable - 7,030
Accounts payable 33,488 28,569
Accrued liabilities 7,615 8,849
Income tax payable 9,372 2,448
Patronage refunds payable - 14,756
--------- ---------
Total current liabilities 57,628 64,600
Long-term debt 2,540 57,217
Other long-term liabilities and
deferred credits 13,818 24,704
Deferred income tax payable 15,154 8,953
Stockholders' equity 215,097 142,956
-------- --------
$304,237 $298,430
======== ========
<FN>
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
<TABLE>
MISSISSIPPI CHEMICAL CORPORATION
AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
MARCH 31, 1995
Cooperative Additional Capital Retained
Common Common Paid-in Equity Earnings
Stock Stock Capital Credits (Deficit) Total
----------- -------- ------- ------- -------- -----
<S> <C> <C> <C> <C> <C> <C>
Balances,
July 1, 1993 $ 27,933 $ - $ 65,692 $62,352 $(36,403) $119,574
Net income - - - - 36,523 36,523
Cash patronage
refunds - - - - (14,756) (14,756)
Stock issued 459 - 1,156 - - 1,615
-------- -------- -------- ------- -------- --------
Balances,
June 30, 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 - - - - (1,829) (1,829)
Net income - - - - 33,413 33,413
------- ------ -------- ------- ------- -------
Balances,
March 31, 1995 $ - $ 229 $178,332 $ - $36,536 $215,097
======= ====== ======== ======= ======= ========
<FN>
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
<TABLE>
MISSISSIPPI CHEMICAL CORPORATION
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine months ended March 31,
1995 1994
---- ----
(Dollars in thousands)
<S> <C> <C>
Cash flows from operating activities:
Net income $ 33,413 $ 8,560
Income from discontinued
operations - (2,783)
-------- --------
Net income from continuing operations 33,413 5,777
Reconciliation of net income from
continuing operations to net cash
provided by operating activities:
Net change in operating assets
and liabilities (7,437) (14,971)
Depreciation, depletion and
amortization 11,894 12,199
Deferred income tax payable 4,781 3,797
Accrual for closure of gypsum
disposal area - 5,922
Other (633) (1,661)
-------- --------
Net cash provided by operating
activities 42,018 11,063
Cash flows from investing activities:
Purchase of property, plant and
equipment (14,158) (7,548)
Disposition of Newsprint South, Inc. (8,751) -
Proceeds received from option 3,000 -
Other 793 (3,182)
-------- ---------
Net cash used by investing activities (19,116) (10,730)
Cash flows from financing activities:
Debt payments (112,126) (123,501)
Debt proceeds 54,625 118,530
Cash patronage paid (14,756) (13,405)
Cash dividends paid (1,829) -
Proceeds from issuance of common
stock 47,401 -
Redemption of common stock (5,447) -
--------- ---------
Net cash used by financing
activities (32,132) (18,376)
--------- ---------
Net decrease in cash and
cash equivalents (9,230) (18,043)
Cash and cash equivalents -
beginning of period 23,219 22,014
-------- ---------
Cash and cash equivalents -
end of period $ 13,989 $ 3,971
======== =========
<FN>
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
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, 1995 and 1994, the Company's financial
position at March 31, 1995 and June 30, 1994, the cash flows for the
nine-month periods ended March 31, 1995 and 1994, and the consolidated
statements of stockholders' equity as of March 31, 1995. 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 consolidated financial statements and notes thereto
included in the Company's June 30, 1994, audited financial statements.
Due to the seasonal nature of the Company's business, the results of
operations for the period ended March 31, 1995, are not necessarily
indicative of the operating results for the full fiscal year.
<PAGE>
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, 1995 March 31, 1995
------------------ -----------------
<TABLE>
<S> <C> <C>
Common shares outstanding 22,898,253 22,198,875
Common stock equivalents for
employee stock options 35,689 26,543
---------- ----------
22,933,942 22,225,418
========== ==========
</TABLE>
Earnings per share for the nine months ended March 31, 1994, and for the
three months ended March 31, 1994, are not meaningful and are not presented
since the Company operated as a cooperative in the prior fiscal year.
In January 1995, the Company's board of directors declared a regular
quarterly cash dividend of $.08 per common share outstanding. This dividend
was paid on February 20, 1995, to stockholders of record as of January 31,
1995.
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 in Hardee County, Florida, of
approximately 12,000 acres. 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 on
July 16, 1999. These properties are classified as property held for sale
at March 31, 1995 and June 30, 1994.
At March 31, 1995, the Company had outstanding commitments to various
customers for the sale of approximately 14,000 tons of nitrogen solutions.
These customers have prepaid for this tonnage, and at March 31, the Company
had recorded on its balance sheet a liability related to these commitments.
In September 1994, the Company and Air Products and Chemicals, Inc.
concluded arrangements whereby the Company will purchase all of the ammonium
nitrate fertilizer produced at Air Products' Pace, Florida, facilities. It
is expected that the Company will purchase approximately 240,000 tons of
ammonium nitrate per year for resale during the fifteen-year term of the
agreement. The arrangements also provided that the Company will transfer
to Air Products its proprietary technology relating to the manufacture of its
brand name ammonium nitrate, Amtrate(R).
In December 1994, the Company signed a letter of intent with Farmland
Industries to enter into a 50-50 joint venture to construct and operate a
1,900 short-ton-per-day anhydrous ammonia plant to be located near LaBrea,
Trinidad. The project is expected to cost approximately $300 million.
Startup of the facility is scheduled for 1997. The Company intends to use
the majority of its portion of the production from the new facility,
expected to be in excess of 300,000 tons per year, primarily as a raw
material for upgrading into finished fertilizer products at its existing
facilities.
<PAGE>
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, 1994.
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, 1995, were favorably influenced by strong demand and tight supplies
worldwide for many of the Company's fertilizer products, along with
significantly improved prices. Anhydrous ammonia prices rose significantly
earlier in the year and have remained high throughout the period due to a
tight supply/demand balance. The Company converts substantially all of the
ammonia it produces into upgraded nitrogen products. Throughout the nine
month period, prices for upgraded nitrogen products have continued to gain
momentum and the price for upgraded products now more closely reflects the
increased price of anhydrous ammonia, from which those products are
produced. Favorable natural gas prices also contributed to improved
margins for nitrogen products. The Company anticipates gas prices will
remain stable for the balance of the current fiscal year.
During the current period, diammonium phosphate ("DAP") prices continued to
rise in response to increased raw material costs and strong offshore demand.
Also in the quarter, DAP production was interrupted for several days due to
delayed raw material shipments caused by transportation problems. These
outages caused a loss of production which negatively impacted sales and
per-ton costs of DAP in the current period.
<PAGE>
During the quarter, the Company also lost ammonia production at its
Donaldsonville, Louisiana, facility due to a scheduled maintenance turnaround
and temporary difficulties associated with returning the plant to service. A
portion of this lost production was replaced with purchased ammonia causing
increased costs per ton. Both the DAP facility and the Donaldsonville
facility are now operating at full capacity.
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,
------------------ -----------------
1995 1994 1995 1994
------- -------- ------- --------
<TABLE> (in thousands)
<S> <C> <C> <C> <C>
Net Sales:
Nitrogen $ 76,349 $ 70,993 $168,699 $137,387
DAP 29,404 25,102 82,391 57,257
Potash 8,334 7,436 18,504 14,319
Other 590 627 1,547 1,520
-------- -------- -------- --------
Net Sales $114,677 $104,158 $271,141 $210,483
======== ======== ======== ========
Three months ended Nine months ended
March 31, March 31,
------------------ -----------------
1995 1994 1995 1994
---- ---- ---- ----
(in thousands)
<S> <C> <C> <C> <C>
Tons Sold:
Nitrogen 525 589 1,279 1,182
DAP 175 178 519 462
Potash 108 107 244 203
Three months ended Nine months ended
March 31, March 31,
------------------ -----------------
1995 1994 1995 1994
---- ---- ---- ----
(in thousands)
<S> <C> <C> <C> <C>
Average Price Per Ton:
Nitrogen $ 145 $ 121 $ 132 $ 116
DAP $ 168 $ 141 $ 159 $ 124
Potash $ 77 $ 69 $ 76 $ 71
</TABLE>
NET SALES. Net sales increased 10.1% from $104.2 million for the quarter
ended March 31, 1994, to $114.7 million for the quarter ended March 31, 1995,
primarily as a result of higher sales prices for nitrogen fertilizers, DAP and
potash partially offset by lower sales volumes for nitrogen fertilizers and
DAP. For the current quarter, nitrogen fertilizer sales increased 7.5% as
a result of a 20.6% increase in the average price per ton partially offset
by a 10.8% decrease in tons sold. The decrease in tons sold was the result
of stronger than normal product movement in the first six months of the
fiscal year and reduced demand due to wet conditions in the Company's
primary trade area during the third quarter. Sales of DAP increased 17.1%
as a result of a 19.6% increase in the average price per ton offset by a 2.0%
decrease in tons sold. Potash sales increased 12.1% primarily as a result
of an increase in the average price per ton.
For the nine months ended March 31, net sales increased from $210.5
million in 1994 to $271.1 million in 1995, a 28.8% increase. This was
primarily the result of higher sales prices and increased sales volumes
for nitrogen, potash and DAP fertilizers. Nitrogen fertilizer sales
increased 22.8% as a result of an 8.2% increase in tons sold and a 13.5%
increase in the average price per ton. Sales of DAP increased 43.9% as a
result of a 12.3% increase in tons sold and a 28.1% increase in the
average price per ton. Potash sales increased 29.2% as a result of a 20.3%
increase in tons sold and a 7.4% increase in the average price per ton.
<PAGE>
COST OF PRODUCTS SOLD. The cost of products sold increased from $70.4
million for the three months ended March 31, 1994, to $73.9 million for the
three months ended March 31, 1995. As a percentage of net sales, cost of
products sold decreased from 67.6% to 64.4%. This decrease reflects increases
in sales prices for all products and a reduction in the cost per ton of potash
offset by increases in the cost per ton of nitrogen fertilizers and DAP.
Nitrogen fertilizer cost per ton increased due to increased purchases of
finished products partially offset by lower prices paid for natural gas during
the current period. For the nine months ended March 31, cost of products sold
increased from $153.3 million in 1994 to $180.3 million in 1995. As a
percentage of net sales, cost of products sold decreased from 72.8% to 66.5%.
This decrease in cost of products sold, as a percentage of net sales, reflects
increases in sales prices for all products and a reduction in the production
cost of nitrogen fertilizers and potash. Nitrogen fertilizer production costs
decreased primarily due to lower prices paid for natural gas during the
current period. Also during fiscal 1995, the Company incurred lower
maintenance and labor costs due to a scheduled biennial maintenance
turnaround at the Company's Yazoo City facility during fiscal 1994.
This decrease was partially offset by increased purchases of nitrogen
finished products.
For both the three month period and the nine month period, DAP costs per
ton increased as a result of higher raw material costs, primarily for ammonia.
Potash costs per ton decreased as a result of increased production volume
during the current fiscal year resulting from an expansion which was
completed in May 1994. This expansion increased potash production capacity
from approximately 300,000 tons to approximately 420,000 tons per year.
SELLING EXPENSES. Selling expenses decreased from $9.6 million for the
three months ended March 31, 1994, to $8.4 million for the three months ended
March 31, 1995. As a percentage of net sales, selling expenses decreased from
9.2% for the three months ended March 31, 1994, to 7.3% for the three months
ended March 31, 1995. Factors contributing to this decrease were increased
sales prices and lower storage costs. For the nine months ended March 31,
selling expenses decreased from $20.6 million in 1994 to $20.4 million in
1995. As a percentage of net sales, selling expenses decreased from 9.8%
in fiscal 1994 to 7.5% in fiscal 1995. Factors contributing to this
decrease were increased sales prices and higher DAP sales which bear no
delivery expense. Also, the Company sold more of its nitrogen products
directly from production facilities, thereby eliminating delivery and storage
expense on those sales.
GENERAL AND ADMINISTRATIVE EXPENSES. General and administrative expenses
decreased from $6.6 million for the three months ended March 31, 1994, to $5.0
million for the three months ended March 31, 1995. As a percentage of net
sales, general and administrative expenses decreased from 6.3% to 4.3%. For
the nine months ended March 31, general and administrative expenses
increased from $13.0 million in 1994 to $15.9 million in 1995. As a
percentage of net sales, general and administrative expenses decreased from
6.2% to 5.9%. During the first nine months of the current fiscal year, the
Company accrued approximately $.9 million more for employee incentives
related to income levels than in the prior fiscal year. Also, during the
prior fiscal year, the Company transferred approximately $1.5 million more
of payroll overhead costs to cost of products sold than in the current
fiscal year. For the three month and the nine month periods ended
March 31, 1995, the Company incurred expenses related to the purchase of a
new computer system.
<PAGE>
OPERATING INCOME. As a result of the above factors, operating income
increased from $11.7 million for the three months ended March 31, 1994, to $27.5
million for the three months ended March 31, 1995, a 135% increase. For the
nine months ended March 31, operating income increased from $17.7 million in
1994 to $54.5 million in 1995, a 208% increase.
INTEREST, NET. For the three months ended March 31, 1995, net interest
expense was $.1 million compared to $.8 million for the three months ended
March 31, 1994. For the nine months ended March 31, net interest decreased
from $3.1 million in 1994 to $.7 million in 1995. These decreases
primarily reflect lower levels of borrowings due to the repayment of debt
from the proceeds of a stock offering in August, 1994. The Company also
had higher earnings due to higher levels of investments and higher rates
earned on these investments during the current year.
INCOME TAX EXPENSE. Income tax expense increased from $1.7 million
for the three months ended March 31, 1994, to $10.5 million for the three
months ended March 31, 1995. For the nine month period, income tax
expense increased from $3.1 million in 1994 to $20.8 million in 1995.
The Company's effective tax rate increased significantly in the current
fiscal year as the result of the conversion from a cooperative to a regular
business corporation on July 1, 1994.
<PAGE>
INCOME FROM CONTINUING OPERATIONS BEFORE CUMULATIVE EFFECT OF CHANGE IN
ACCOUNTING PRINCIPLE. As a result of the foregoing, income from continuing
operations before the cumulative effect of a change in accounting principle
increased from $9.5 million for the three months ended March 31, 1994, to $17.2
million for the three months ended March 31, 1995. For the nine months ended
March 31, income from continuing operations before the cumulative effect of
change in accounting principle increased from $11.9 million in 1994 to $33.4
million in 1995.
LIQUIDITY AND CAPITAL RESOURCES
At March 31, 1995, the Company had cash and cash equivalents of $14.0
million, compared to $23.2 million at June 30, 1994, a decrease of $9.2
million.
OPERATING ACTIVITIES. For the nine months ended March 31, 1995, net cash
provided by operating activities was $42.0 million as compared to $11.1
million for the nine months ended March 31, 1994. During the current
period, the Company's income from continuing operations and non-cash
charges for depreciation and deferred taxes more than offset cash use
attributable to a net change in operating assets and liabilities.
INVESTING ACTIVITIES. Net cash used by investing activities was $19.1
million for the nine months ended March 31, 1995, as compared to $10.7 million
for the nine months ended March 31, 1994. This increase is primarily
attributable to final payments of $8.8 million in the current year related to
the disposition of Newsprint South, Inc. These payments were partially offset
by the receipt of option payments relating to the Company's Florida phosphate
rock properties.
Capital expenditures were $14.2 million during the nine months ended
March 31, 1995. These expenditures were for improvements and modifications
to the Company's facilities, including approximately $3.2 million for the
purchase of a new computer system, approximately $3.3 million for an emission
control system for the ammonium nitrate prill towers at the Yazoo City
nitrogen production facility, and approximately $2.0 million for a
phosphate rock unloading system at the Pascagoula DAP facility.
<PAGE>
FINANCING ACTIVITIES. Net cash used by financing activities was $32.1
million and $18.4 million, respectively, for the nine months ended March 31,
1995, and March 31, 1994. During the current year, the amounts provided by
financing activities included $47.4 million proceeds received from a stock
offering in August 1994. These proceeds were subsequently used to prepay a
portion of the Company's long-term debt. During the current year, the Company
paid $5.4 million to its stockholders related to the reorganization of the
Company and paid $1.8 million in cash dividends. 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 and its subsidiaries have commitments for short-term
borrowing up to $20.0 million, which includes $15.0 million from NationsBank.
At March 31, 1995, there were no short-term borrowings outstanding on
these commitments as compared to $7.0 million outstanding at June 30, 1994.
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 ("LIBOR") or U.S. Treasury notes. At March 31, 1995,
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 maximum combined amount outstanding under the short-term lines and the
revolving credit facility at any month-end for the nine months ended March 31,
1995 was $16.2 million.
In December 1994, the Company transferred approximately $13.9 million
from long-term debt to long-term debt due within one year. The Company
prepaid approximately $7.8 million during the three months ended March 31,
1995, and intends to prepay the remaining $6.1 million during the current
fiscal year.
In December 1994, the Company signed a letter of intent with Farmland
Industries to enter into a 50-50 joint venture to construct and operate a
1,900 short-ton-per-day anhydrous ammonia plant to be located near LaBrea,
Trinidad. The project is expected to cost approximately $300 million. It
is anticipated that a substantial portion of the cost will be financed on a
nonrecourse project basis. The Company's equity contribution will be
financed with internally generated cash flows and available lines of credit.
The Company believes that existing cash, cash generated from operations
and available lines of credit will be sufficient to satisfy its financing
needs for the foreseeable future.
<PAGE>
PART II - OTHER INFORMATION
Item 6(b). REPORTS ON FORM 8-K.
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 18, 1995 /s/ William F. Hawkins
-------------- ----------------------
William F. Hawkins
Senior Vice President - Finance
and Administration
Date: April 18, 1995 /s/ Rosalyn B. Glascoe
--------------- ----------------------
Rosalyn B. Glascoe
Corporate Secretary
