<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
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.
</LEGEND>
<CIK> 0000066895
<NAME> MISSISSIPPI CHEMICAL CORPORATION
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-30-1996
<PERIOD-END> MAR-31-1996
<CASH> 52,678
<SECURITIES> 0
<RECEIVABLES> 26,410
<ALLOWANCES> 1,200
<INVENTORY> 55,517
<CURRENT-ASSETS> 139,437
<PP&E> 396,514
<DEPRECIATION> 277,329
<TOTAL-ASSETS> 330,547
<CURRENT-LIABILITIES> 62,194
<BONDS> 0
0
0
<COMMON> 229
<OTHER-SE> 235,308
<TOTAL-LIABILITY-AND-EQUITY> 330,547
<SALES> 304,167
<TOTAL-REVENUES> 304,903
<CGS> 207,733
<TOTAL-COSTS> 245,354
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 200
<INTEREST-EXPENSE> (1,508)
<INCOME-PRETAX> 61,057
<INCOME-TAX> 23,831
<INCOME-CONTINUING> 37,226
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 37,226
<EPS-PRIMARY> 1.68
<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, 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
<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,
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
<PAGE>
<TABLE>
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) <C> <C> <C> <C>
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
======== ======== ======== ========
</TABLE>
[FN]
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
MISSISSIPPI CHEMICAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
March 31, June 30,
1996 1995
---------- ---------
(Dollars in thousands)
<S> <C> <C>
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
<S> <C> <C>
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
======== ========
</TABLE>
[FN]
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
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)
<S> <C> <C> <C> <C> <C> <C> <C>
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
======== ======= ======== ======== ======= ======== ========
<FN>
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
MISSISSIPPI CHEMICAL CORPORATION
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine months ended March 31,
1996 1995
--------- --------
(Dollars in thousands)
<S> <C> <C>
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
======== ========
<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, 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:
<TABLE>
Three months ended Nine months ended
March 31, March 31,
1996 1995 1996 1995
---------- ---------- ---------- -----------
<S> <C> <C> <C> <C>
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
========== ========== ========== ==========
</TABLE>
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.
<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, 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:
<TABLE>
Three months ended Nine months ended
March 31, March 31,
-------------------- --------------------
1996 1995 1996 1995
--------- -------- -------- ---------
(in thousands)
<S> <C> <C> <C> <C>
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)
<S> <C> <C> <C> <C>
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
-------- ------- ------- ------
<S> <C> <C> <C> <C>
Average Price Per Ton:
Nitrogen $ 145 $ 145 $ 139 $ 132
DAP $ 214 $ 168 $ 191 $ 159
Potash $ 73 $ 77 $ 71 $ 76
</TABLE>
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
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Timothy A. Dawson
Vice President - Finance
Date: April 15, 1996 /s/ Rosalyn B. Glascoe
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Rosalyn B. Glascoe
