0001243786-21-000049.txt : 20210503 0001243786-21-000049.hdr.sgml : 20210503 20210503160525 ACCESSION NUMBER: 0001243786-21-000049 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 17 CONFORMED PERIOD OF REPORT: 20210503 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20210503 DATE AS OF CHANGE: 20210503 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MOSAIC CO CENTRAL INDEX KEY: 0001285785 STANDARD INDUSTRIAL CLASSIFICATION: AGRICULTURE CHEMICALS [2870] IRS NUMBER: 201026454 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-32327 FILM NUMBER: 21883519 BUSINESS ADDRESS: STREET 1: 101 EAST KENNEDY BLVD. STREET 2: SUITE 2500 CITY: TAMPA STATE: FL ZIP: 33602 BUSINESS PHONE: 813-775-4200 MAIL ADDRESS: STREET 1: 101 EAST KENNEDY BLVD. STREET 2: SUITE 2500 CITY: TAMPA STATE: FL ZIP: 33602 FORMER COMPANY: FORMER CONFORMED NAME: GLOBAL NUTRITION SOLUTIONS INC DATE OF NAME CHANGE: 20040401 8-K 1 mos-20210503.htm 8-K mos-20210503
MOSAIC CO0001285785false00012857852021-05-032021-05-03

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 3, 2021
 
THE MOSAIC COMPANY
(Exact name of registrant as specified in its charter)
 
 
DE001-3232720-1026454
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
101 East Kennedy Blvd.
33602
Suite 2500
Tampa,
FL
(Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code: (800918-8270
Not applicable
(Former Name or Former Address, if Changed Since Last Report)  
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.01 per shareMOSNYSE
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ¨



Item 2.02.Results of Operations and Financial Condition.
The following information is being “furnished” in accordance with General Instruction B.2. of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as expressly set forth by specific reference in such filing:
Furnished herewith as Exhibit 99.1 and incorporated by reference herein is the text of The Mosaic Company’s (“Mosaic,” and Mosaic and its subsidiaries, individually or in any combination, “we,” “us” or “our”) announcement regarding its earnings and results of operations for the quarter ended March 31, 2021, as presented in a press release issued on May 3, 2021.
Furnished herewith as Exhibit 99.2 and incorporated by reference herein is certain performance data for the period ended March 31, 2021 to be published on Mosaic’s website.
Item 9.01.Financial Statements and Exhibits.
(d) Exhibits.
Reference is made to the Exhibit Index hereto with respect to the exhibits furnished herewith. The following exhibits are being “furnished” in accordance with General Instruction B.2. of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, nor shall they be deemed to be incorporated by reference in any filing under the Securities Act or the Exchange Act, except as expressly set forth by specific reference in such filing.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
THE MOSAIC COMPANY
Date: May 3, 2021By:/s/ Mark J. Isaacson
Name:Mark J. Isaacson
Title:Senior Vice President, General Counsel
and Corporate Secretary


EX-99.1 2 pressreleaseq12021-ex991.htm EX-99.1 2021 Q1 EARNINGS RELEASE Document


Exhibit 99.1
image1a311a.jpg
  
The Mosaic Company
101 E. Kennedy Blvd., Suite 2500
Tampa, FL 33602
www.mosaicco.com
FOR IMMEDIATE RELEASE
Media
Ben Pratt
The Mosaic Company
813-775-4206
benjamin.pratt@mosaicco.com
  
Investors
Laura Gagnon
The Mosaic Company
813-775-4214
investor@mosaicco.com
  
 
THE MOSAIC COMPANY REPORTS FIRST QUARTER 2021 RESULTS

TAMPA, FL, May 3, 2021 - The Mosaic Company (NYSE: MOS), reported net income of $157 million, or $0.41 per share, for the first quarter of 2021. Adjusted EPS(1) was $0.57 and adjusted EBITDA(1) was $560 million. Gross margin was $435 million compared to $41 million a year ago, reflecting improved per tonne margins in all three operating segments as a result of higher phosphates prices, higher potash volumes and transformation benefits. Reported earnings were negatively impacted by notable items of $77 million.
“Mosaic delivered excellent earnings for the first quarter of 2021, and our outlook for the year remains favorable,” said Joc O’Rourke, President and CEO. “We are demonstrating the earnings power resulting from the combination of our long-term cost structure improvements and strong global fertilizer markets.”
Highlights:
First quarter revenues were up 28 percent year-over-year to $2.3 billion, as the company capitalized on stronger market conditions.
Gross margins in the quarter were up almost 10-fold from the prior year period, primarily as a result of year-over-year price increases. The gross margin rate in the quarter was 19 percent, up from 2 percent in first quarter of 2020, and the highest gross margin rate since the second quarter of 2015.
Mosaic's balance sheet continued to strengthen. Unrestricted cash totaled $692 million as of March 31. The company generated $319 million in cash flow from operations in the quarter. Capital expenditures were $289 million in the quarter, and net debt ended the quarter at $3.8 billion, down $700 million from the year ago period.

(1)See “Non-GAAP Financial Measures” for additional information and reconciliation.






Phosphates sales volumes were up 7 percent year-over-year to 2.1 million tonnes. Production volumes were 1.9 million tonnes, reflecting turnaround activity in the quarter. Due to ongoing strong demand, inventories remain well below historical levels, and as a result, sales are expected to be constrained to production volumes in the second quarter. Higher input costs were more than offset by improved pricing, and lower cash conversion costs, which resulted in gross margin per tonne increasing to $84 per tonne, up from last year's loss of $43 per tonne.
Potash sales volumes of 2.0 million tonnes in the first quarter were up 4 percent year-over-year as the company's operating rate reached 94 percent in the quarter. Essentially flat MOP prices year-over-year, higher volumes and lower brine management spending resulted in a gross margin per tonne of $71. On an adjusted basis, gross margin per tonne in the first quarter was $82, up 19 percent from the prior year period.
Mosaic Fertilizantes recorded its highest first quarter adjusted EBITDA of $104 million, up 53 percent from the prior year period. In the quarter, Mosaic Fertilizantes generated a gross margin per tonne of $50, primarily due to higher prices. The business is ahead of schedule in reaching its targeted $200 million of annual EBITDA contribution from transformation in the 2019 to 2022 period.
Mosaic continues to lead the industry in environmental, social and governance performance, and our efforts are being recognized. In addition to being named to Barron’s list of the 100 Most Sustainable Companies, Mosaic was also recognized as the 2020 winner of the prestigious Robert W. Campbell Award by the National Safety Council, which honors companies that achieve business excellence through the integration of environment, health and safety management into business operations.
The U.S. International Trade Commission concluded that subsidized phosphate imports from Morocco and Russia materially injured the U.S. phosphate industry. As a result, the U.S. Department of Commerce imposed import duties on phosphates from Morocco and Russia. Mosaic sought these duties in order to level the competitive playing field in the U.S.

First Quarter Segment Results
Potash Results*1Q 20214Q 20201Q 2020
Sales Volumes million tonnes2.02.71.9
MOP Selling Price(2)
$200$176$200
Gross Margin (GAAP) per tonne$71$45$57
Adjusted Gross Margin (non-GAAP) per tonne
$82$51$69
*Tonnes = finished product tonnes
(2) Average MOP Selling Price (fob mine)

Net sales in the Potash segment totaled $477 million for the first quarter, up from $442 million one year ago, due to higher volumes. Gross margin for the first quarter was $140 million compared to $109 million for the same period a year ago.



Cash cost per tonne excluding brine management during the quarter averaged $64, up from the prior year period average of $57. This increase mainly reflected adverse foreign exchange rates, and a production mix shift at Esterhazy as K1 and K2 contributed higher than expected volumes needed to meet the increased product demand. Esterhazy costs of production will continue to decline as K3 ramps up and K1 and K2 are taken out of service. Brine management cash costs declined to $15 million from $21 million in the prior year quarter as development of K3 nears completion.
Mosaic Fertilizantes Results*1Q 20214Q 20201Q 2020
Sales Volumes million tonnes2.12.32.1
Brazil MAP Selling Price(3)
$421$384$330
Average Finished Product Selling Price (destination)$370$352$352
Gross Margin (GAAP) per tonne$50$32$32
*Tonnes = finished product tonnes
(3) Average MAP selling price (Brazil production, delivered price to third party customers)

Net sales in the Mosaic Fertilizantes segment were $763 million for the first quarter, up from $731 million in the prior year period due to higher year-over-year prices. Gross margin was $103 million, compared to $66 million for the same period a year ago, as improved pricing and favorable foreign currency impacts offset inflationary and other pressures on production costs.
Inflationary impacts on year-over-year Brazilian Real-based cash costs have been substantially offset by benefits of a weakening Brazilian currency. U.S. dollar cash costs of phosphate conversion were $65 per tonne in the first quarter of 2021, down from $69 per tonne in the prior year period, as transformation benefits offset a lower operating rate. U.S. dollar cash costs of mined rock were $72 per tonne, up from $70 per tonne in the prior year period, as lower mined volumes and rock mix shifts at Araxa offset transformation benefits in the quarter. The company expects both operating rates and mined volumes to revert to normal levels in the second quarter.
  Phosphates Results*1Q 20214Q 20201Q 2020
Sales Volumes million tonnes2.12.31.9
DAP Selling Price(4)
$426$363$274
Gross Margin (GAAP) per tonne$84$73$(43)
Adjusted Gross Margin (non-GAAP) per tonne
$84$73$(41)
*Tonnes = finished product tonnes
(4) Average DAP Selling Price (fob plant)




Net sales in the Phosphates segment were $1.0 billion for the first quarter, up from $619 million in the prior year period due to higher year-over-year prices and volumes. Gross margin was $173 million, compared to a loss of $83 million for the same period a year ago, as improved pricing, higher volumes and lower conversion costs offset the impact of higher input costs. Gross margin per tonne was $84 compared to a loss of $43 in the prior-year period.

Other
Selling, general and administrative costs (SG&A) were $102 million, up from $68 million in the year-ago period, which primarily reflected the mark-to-market impact of a higher Mosaic share price on current period equity-based incentive accruals. Last year’s first quarter included a $14 million benefit from the reversal of an accrual related to incentive compensation.
Other operating expenses in the quarter were $20 million, down from $40 million in the first quarter of 2020. Total Asset Retirement Obligation cash spending in the quarter was $38 million, which continued to reflect higher spending related to the Plant City closure.
The tax rate during the quarter was 26.5 percent, down from 42 percent in the prior year period reflecting the geographic shift in earnings. The company continues to expect an effective rate for full year 2021 in the mid-20 percent range under current tax regulations.

2021 Market Outlook and Key Assumptions
Strengthening fundamental trends reflected in our results over the last three quarters are expected to continue through the remainder of 2021. Grower economics in most global growing regions remain attractive as a result of strong crop demand, affordable inputs and favorable weather. In China, domestic crop prices continue to incent nutrient application to drive higher yields. In India, a favorable monsoon, above-average reservoir levels and good crop prices are incenting growers to maximize yields, while higher retail prices may negatively impact fertilizer demand.
Phosphate producer and channel inventories remain well below normal. While Chinese phosphate exports continue to be a key consideration, exports declined in 2020 and are expected to remain lower in 2021, as strong domestic demand and recent industry restructuring limit supplies available for export. In phosphates, the company expects to realize approximately $50 per tonne in margin improvement in the second quarter over the first quarter, reflecting an $80 to $90 per tonne improvement in average realized prices partially offset by $30 to $35 per finished product tonne of higher raw material costs.
Potash is seeing similar dynamics that continue to drive demand globally. In April, India signed a contract for $280 per tonne, up nearly 22 percent from the prior year contract, and Canpotex announced it is fully committed into September, highlighting the tightness in the current market. The company expects to realize a $20 to $30 per tonne improvement in average realized prices in the second quarter over the first quarter of 2021.






The company provided the following modeling assumptions for the full year 2021:
Estimated reconciling items EBITDA to EPSFull Year 2021
Depreciation, Depletion & Amortization$875 - $900 million
Selling, General, and Administrative(1)
$375 - $400 million
Net Interest Expense$180 - $190 million
Non-notable adjustments$80 - $90 million
Effective tax rate(2)
Mid 20’s %
(1)Mark-to-market adjustments on equity-based incentive compensation may drive further changes to SG&A expectations.
(2)The company expects cash taxes for the full year 2021 to be approximately $160 million, dependent upon earnings levels and geographic mix.
Capital Expenditures Expectations$ in Billions
Sustaining Capital$0.75-$0.80
Growth Capital$0.30-$0.35
Total Capital~$1.1
.

Sensitivities Table Using 2020 Cost Structure
The company provided the following sensitivities to price and foreign exchange rates to help investors anticipate the potential impact of movements in these factors.
These sensitivities are based on 2020 adjusted EBITDA of $1.56 billion. The company hedges approximately 50 percent of its Brazilian real exposures over time.
Sensitivity
Full year adj. EBITDA impact(1)
2020 Actual
Average MOP Price / tonne (fob mine)(3)
$10/mt price change = $65 million (2)
$181
Average DAP Price / tonne (fob plant)(3)
$10/mt price change = $105 million$310
Average BRL / USD
0.10 change, unhedged = $13 million(4)
5.15
Average CAD / USD0.01 change, unhedged = $13 million1.35
(1) See “Non-GAAP Financial Measures” for additional information and reconciliation.
(2) Includes impact of Canadian Resource Tax
(3) Approximately 20% of DAP price sensitivity impact is expected to be in the Mosaic Fertilizantes segment.; approximately 5% of the MOP price sensitivity impact is expected to be in the Mosaic Fertilizantes segment.
(4) The company hedged about 50 percent of the annual sensitivity. Over longer periods of time, inflation is expected to offset a portion of currency benefits.




About The Mosaic Company
The Mosaic Company is one of the world's leading producers and marketers of concentrated phosphate and potash crop nutrients. Mosaic is a single source provider of phosphate and potash fertilizers and feed ingredients for the global agriculture industry. More information on the company is available at www.mosaicco.com.
Mosaic has posted prepared comments and related slides on its website, www.mosaicco.com/investors, concurrently with the posting of this release and performance data. In addition, the company will provide access to a fireside chat addressing questions on the quarter, current market conditions and other topics on Tuesday, May 4, 2021 at 11 am Eastern. The fireside chat will be available both on its website and via telephone at the following number: 678-825-8336 Conference ID# 1768117. All earnings related material, including audio, will be available up to one year from the time of the earnings call.

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may include, but are not limited to, statements about proposed or pending future transactions or strategic plans and other statements about future financial and operating results. Such statements are based upon the current beliefs and expectations of The Mosaic Company’s management and are subject to significant risks and uncertainties. These risks and uncertainties include, but are not limited to: the economic impact and operating impacts of the coronavirus (Covid-19) pandemic, the potential drop in oil demand/production and its impact on the availability and price of sulfur, political and economic instability and changes in government policies in Brazil and other countries in which we have operations; the predictability and volatility of, and customer expectations about, agriculture, fertilizer, raw material, energy and transportation markets that are subject to competitive and other pressures and economic and credit market conditions; the level of inventories in the distribution channels for crop nutrients; the effect of future product innovations or development of new technologies on demand for our products; changes in foreign currency and exchange rates; international trade risks and other risks associated with Mosaic’s international operations and those of joint ventures in which Mosaic participates, including the performance of the Wa’ad Al Shamal Phosphate Company (also known as MWSPC), the timely development and commencement of operations of production facilities in the Kingdom of Saudi Arabia, and the future success of current plans for MWSPC and any future changes in those plans; difficulties with realization of the benefits of our long term natural gas based pricing ammonia supply agreement with CF Industries, Inc., including the risk that the cost savings initially anticipated from the agreement may not be fully realized over its term or that the price of natural gas or ammonia during the term are at levels at which the pricing is disadvantageous to Mosaic; customer defaults; the effects of Mosaic’s decisions to exit business operations or locations; changes in government policy; changes in environmental and other governmental regulation, including expansion of the types and extent of water resources regulated under federal law, carbon taxes or other greenhouse gas regulation, implementation of numeric water quality standards for the discharge of nutrients into Florida waterways or efforts to reduce the flow of excess nutrients into the Mississippi River basin, the Gulf of Mexico or elsewhere; further developments in judicial or administrative proceedings, or complaints that Mosaic’s operations are adversely impacting nearby farms, business operations or properties; difficulties or delays in receiving, increased costs of or challenges to necessary governmental permits or approvals or increased financial assurance requirements; resolution of global tax audit activity; the effectiveness of Mosaic’s processes for managing its strategic priorities; adverse weather conditions affecting operations in Central Florida, the Mississippi River basin, the Gulf Coast of the United States, Canada or Brazil, and including potential hurricanes, excess heat, cold, snow, rainfall or drought; actual costs of various items differing from management’s current estimates, including, among others, asset retirement, environmental remediation, reclamation or other environmental regulation, Canadian resources taxes and royalties, or the costs of the MWSPC; reduction of Mosaic’s available cash and liquidity, and increased leverage, due to its use of cash and/or available debt capacity to fund financial assurance requirements and strategic investments; brine inflows at Mosaic’s Esterhazy, Saskatchewan, potash mine or other potash shaft mines; other accidents and disruptions involving Mosaic’s operations, including potential mine fires, floods, explosions, seismic events, sinkholes or releases of hazardous or volatile chemicals; and risks associated with cyber security, including reputational loss; as well as other risks and uncertainties reported from time to time in The Mosaic Company’s reports filed with the Securities and Exchange Commission. Actual results may differ from those set forth in the forward-looking statements.

###




Non-GAAP Financial Measures
This press release includes the presentation and discussion of non-GAAP diluted net earnings per share guidance, or adjusted EPS, and adjusted EBITDA, referred to as non-GAAP financial measures.  Generally, a non-GAAP financial measure is a supplemental numerical measure of a company's performance, financial position or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with U.S. generally accepted accounting principles, or GAAP. Non-GAAP financial measures should not be considered as substitutes for, or superior to, measures of financial performance prepared in accordance with GAAP. In addition, because non-GAAP measures are not determined in accordance with GAAP, they are thus susceptible to varying interpretations and calculations and may not be comparable to other similarly titled measures of other companies. Adjusted metrics, including adjusted EPS and adjusted EBITDA are calculated by excluding the impact of notable items from the GAAP measure. Notable items impact on gross margin and EBITDA is pretax.  Notable items impact on diluted net earnings per share is calculated as the notable item amount plus income tax effect, based on expected annual effective tax rate, divided by diluted weighted average shares. Management believes that these adjusted measures provide securities analysts, investors, management and others with useful supplemental information regarding our performance by excluding certain items that may not be indicative of, or are unrelated to, our core operating results. Management utilizes these adjusted measures in analyzing and assessing Mosaic’s overall performance and financial trends, for financial and operating decision-making, and to forecast and plan for future periods. These adjusted measures also assist our management in comparing our and our competitors' operating results. We are not providing forward looking guidance for U.S. GAAP reported diluted net earnings per share, gross margin per tonne, or a quantitative reconciliation of forward-looking adjusted EPS, adjusted gross margin and adjusted EBITDA because we are unable to predict with reasonable certainty our notable items without unreasonable effort. Historically, our notable items have included, but are not limited to, foreign currency transaction gain or loss, unrealized gain or loss on derivatives, acquisition-related fees, discrete tax items, contingencies and certain other gains or losses. These items are uncertain, depend on various factors, and could have a material impact on U.S. GAAP reported results for the guidance period.  Reconciliations for current and historical periods beginning with the quarter ended June 30, 2019, for consolidated adjusted EPS and adjusted EBITDA, as well as segment adjusted EBITDA and adjusted gross margin per tonne are provided in the Selected Calendar Quarter Financial Information performance data for the related periods.  This information is being furnished under Exhibit 99.2 of the Form 8-K and available on our website at www.mosaicco.com in the “Financial Information - Quarterly Earnings” section under the “Investors” tab.



For the three months ended March 31, 2021, the company reported the following notable items which, combined, negatively impacted earnings per share by $(0.16): 
AmountTax effectEPS impact
DescriptionSegmentLine item(in millions)(in millions)(per share)
Foreign currency transaction gain (loss)ConsolidatedForeign currency transaction gain (loss) $(46)$10 $(0.09)
Unrealized gain (loss) on derivatives Corporate and OtherCost of goods sold(8)(0.02)
Closed and indefinitely idled facility costsPhosphatesOther operating income (expense)(10)(0.02)
Closed and indefinitely idled facility costsPotashOther operating income (expense)(5)(0.01)
Accelerated depreciationPotashCost of goods sold(22)(0.04)
Pre-acquisition reserve adjustmentMosaic FertilizantesOther operating income (expense)11 (3)0.02 
Realized gain on RCRA Trust SecuritiesPhosphatesOther non-operating income (expense)(1)0.01 
Discrete tax itemsConsolidated(Provision for) benefit from income taxes— (4)(0.01)
Total Notable Items$(77)$14 $(0.16)
For the three months ended March 31, 2020, the company reported the following notable items which, combined, negatively impacted earnings per share by $(0.48): 
AmountTax effectEPS impact
DescriptionSegmentLine item(in millions)(in millions)(per share)
Foreign currency transaction gain (loss)ConsolidatedForeign currency transaction gain (loss) $(214)$70 $(0.38)
Unrealized gain (loss) on derivatives Corporate and OtherCost of goods sold(51)17 (0.09)
Legal contingenciesMosaic FertilizantesOther operating income (expense)(9)(0.02)
Accelerated depreciationPotashCost of goods sold(22)(0.03)
Closed and indefinitely idled facility costsPhosphatesOther operating income (expense)(8)(0.02)
Closed and indefinitely idled facility costsPotashOther operating income (expense)(8)(0.02)
Realized gain on RCRA Trust SecuritiesPhosphatesOther non-operating income (expense)(2)0.01 
Discrete tax itemsConsolidated(Provision for) benefit from income taxes— 28 0.08 
Government mandated mine shutdownPhosphatesCost of goods sold(5)(0.01)
Total Notable Items$(312)$130 $(0.48)
 



Condensed Consolidated Statements of Earnings
(in millions, except per share amounts)
 
The Mosaic Company  (unaudited)
 
Three months ended
 March 31,
 20212020
Net sales$2,297.1 $1,798.1 
Cost of goods sold1,862.2 1,756.7 
Gross margin434.9 41.4 
Selling, general and administrative expenses101.7 67.9 
Other operating expense20.0 39.7 
Operating earnings313.2 (66.2)
Interest expense, net(45.0)(41.1)
Foreign currency transaction gain (loss)(45.8)(214.2)
Other income3.0 4.5 
Earnings (loss) from consolidated companies before income taxes225.4 (317.0)
Provision for (benefit from) income taxes59.7 (133.0)
Earnings (loss) from consolidated companies165.7 (184.0)
Equity in net (loss) of nonconsolidated companies(7.5)(20.0)
Net earnings (loss) including noncontrolling interests158.2 (204.0)
Less: Net earnings (loss) attributable to noncontrolling interests1.5 (1.0)
Net earnings (loss) attributable to Mosaic$156.7 $(203.0)
Diluted net earnings (loss) per share attributable to Mosaic$0.41 $(0.54)
Diluted weighted average number of shares outstanding382.8 378.8 



Condensed Consolidated Balance Sheets
(in millions, except per share amounts)
The Mosaic Company  (unaudited)
 March 31, 2021December 31, 2020
Assets
Current assets:
Cash and cash equivalents$692.0 $574.0 
Receivables, net, including affiliate receivables of $114.3 and $144.8, respectively851.6 881.1 
Inventories1,860.7 1,739.2 
Other current assets323.0 326.9 
Total current assets3,727.3 3,521.2 
Property, plant and equipment, net of accumulated depreciation of $8,301.3 and $8,106.8, respectively11,798.9 11,854.3 
Investments in nonconsolidated companies673.9 673.1 
Goodwill1,180.0 1,173.0 
Deferred income taxes1,175.2 1,179.4 
Other assets1,346.8 1,388.8 
Total assets$19,902.1 $19,789.8 
Liabilities and Equity
Current liabilities:
Short-term debt$15.1 $0.1 
Current maturities of long-term debt498.7 504.2 
Structured accounts payable arrangements797.5 640.0 
Accounts payable762.3 769.1 
Accrued liabilities1,281.4 1,233.1 
Total current liabilities3,355.0 3,146.5 
Long-term debt, less current maturities3,970.8 4,073.8 
Deferred income taxes1,072.1 1,060.8 
Other noncurrent liabilities1,707.2 1,753.5 
Equity:
Preferred Stock, $0.01 par value, 15,000,000 shares authorized, none issued and outstanding as of March 31, 2021 and December 31, 2020— — 
Common Stock, $0.01 par value, 1,000,000,000 shares authorized, 390,565,856 shares issued and 379,683,359 shares outstanding as of March 31, 2021, 389,974,041 shares issued and 379,091,544 shares outstanding as of December 31, 20203.8 3.8 
Capital in excess of par value876.2 872.8 
Retained earnings10,667.7 10,511.0 
Accumulated other comprehensive loss(1,923.5)(1,806.2)
Total Mosaic stockholders' equity9,624.2 9,581.4 
Noncontrolling interests172.8 173.8 
Total equity9,797.0 9,755.2 
Total liabilities and equity$19,902.1 $19,789.8 




 Condensed Consolidated Statements of Cash Flows
(in millions, except per share amounts)
The Mosaic Company  (unaudited)
 Three months ended
March 31,
 20212020
Cash Flows from Operating Activities:
Net cash provided by operating activities$318.8 $189.9 
Cash Flows from Investing Activities:
Capital expenditures(288.6)(263.5)
Purchases of available-for-sale securities - restricted(123.7)(210.0)
Proceeds from sale of available-for-sale securities - restricted110.8 203.8 
Purchases of held-to-maturity securities(0.8)(0.7)
Proceeds from sale of held-to-maturity securities0.8 0.8 
Other(7.0)(0.1)
Net cash used in investing activities(308.5)(269.7)
Cash Flows from Financing Activities:
Payments of short-term debt— (132.6)
Proceeds from issuance of short-term debt15.0 1,105.4 
Payments of structured accounts payable arrangements(161.0)(412.9)
Proceeds from structured accounts payable arrangements314.7 171.6 
Collection of transferred receivables86.6 — 
Payments of long-term debt(114.5)(14.2)
Cash dividends paid(18.9)(18.9)
Other(0.2)(0.1)
Net cash provided by financing activities121.7 698.3 
Effect of exchange rate changes on cash(20.1)(68.9)
Net change in cash, cash equivalents and restricted cash111.9 549.6 
Cash, cash equivalents and restricted cash - beginning of period594.4 532.3 
Cash, cash equivalents and restricted cash - end of period$706.3 $1,081.9 
Reconciliation of cash, cash equivalents and restricted cash reported within the unaudited condensed consolidated balance sheets to the unaudited statements of cash flows:
Cash and cash equivalents$692.0 $1,069.2 
Restricted cash in other current assets10.0 8.6 
Restricted cash in other assets4.3 4.1 
Total cash, cash equivalents and restricted cash shown in the unaudited statements of cash flows$706.3 $1,081.9 




Earnings Per Share Calculation
 
 Three months ended March 31,
 20212020
Net income (loss) attributable to Mosaic$156.7 $(203.0)
Basic weighted average number of shares outstanding379.2 378.8 
Dilutive impact of share-based awards3.6 — 
Diluted weighted average number of shares outstanding382.8 378.8 
Basic net income (loss) per share attributable to Mosaic$0.41 $(0.54)
Diluted net income (loss) per share attributable to Mosaic$0.41 $(0.54)
Notable items impact on net income (loss) per share attributable to Mosaic(0.16)(0.48)
Adjusted diluted net income (loss) per share attributable to Mosaic $0.57 $(0.06)


Reconciliation of Non-GAAP Financial Measures
Consolidated Earnings (in millions)
Three months ended March 31,Three months ended March 31,
 20212020
Consolidated net earnings (loss) attributable to Mosaic$157 $(203)
Less: Consolidated interest expense, net(45)(41)
Plus: Consolidated depreciation, depletion and amortization209 217 
Plus: Accretion expense17 17 
Plus: Share-based compensation (income) expense15 (10)
Plus: Consolidated provision for (benefit from) income taxes60 (133)
Less: Equity in net earnings (loss) of nonconsolidated companies, net of dividends(7)(20)
Plus: Notable items50 285 
Adjusted EBITDA$560 $234 

Three months ended
Potash Gross Margin (per tonne)
March 31,December 31,March 31,
202120202020
Gross margin / tonne$71 $45 $57 
Notable items in gross margin / tonne11 12 
Adjusted gross margin / tonne$82 $51 $69 
Three months ended
Phosphates Gross Margin (per tonne)
March 31,December 31,March 31,
202120202020
Gross margin / tonne$84 $73 $(43)
Notable items in gross margin / tonne— — 
Adjusted gross margin / tonne$84 $73 $(41)


EX-99.2 3 performancedataq12021-ex992.htm EX-99.2 2021 Q1 PERFORMANCE DATA Document

Exhibit 99.2
The Mosaic Company
Selected Calendar Quarter Financial Information
(Unaudited)
Q2 2019Q3 2019Q4 2019Q1 2020Q2 2020Q3 2020Q4 2020Q1 2021
Consolidated data (in millions, except per share)
Diluted net earnings (loss) per share$(0.60)$(0.11)$(2.43)$(0.54)$0.12 $(0.02)$2.17 $0.41 
Notable items impact on earnings per share(a)
(0.72)(0.19)(2.14)(0.48)0.01 (0.25)1.60 (0.16)
Adjusted diluted net earnings per share(a)
$0.12 $0.08 $(0.29)$(0.06)$0.11 $0.23 $0.57 $0.57 
Diluted weighted average # of shares outstanding385.8 385.0 378.8 378.8 381.3 379.1 382.3 382.8 
Total Net Sales $2,177 $2,753 $2,076 $1,798 $2,045 $2,382 $2,458 $2,297 
Cost of goods sold1,950 2,473 1,996 1,757 1,788 2,027 2,046 1,862 
Gross Margin$227 $280 $80 $41 $257 $355 $412 $435 
SG&A78 78 105 68 95 98 111 102 
Other operating (income) expense(p) (r)
391 62 1,170 39 76 159 20 
Operating earnings$(242)$140 $(1,195)$(66)$86 $98 $295 $313 
Interest expense, net(46)(43)(47)(41)(49)(43)(47)(45)
Consolidated foreign currency gain/(loss)21 (54)31 (214)34 110 (46)
Earnings from consolidated companies before income taxes(271)52 (1,214)(317)73 66 359 225 
Provision for (benefit from) income taxes(52)69 (289)(133)(3)38 (480)60 
Earnings (loss) from consolidated companies$(219)$(17)$(925)$(184)$76 $28 $839 $165 
Equity in net earnings (loss) of nonconsolidated companies(11)(23)(25)(20)(30)(32)(11)(7)
Less: Net earnings (loss) attributable to noncontrolling interests(29)(1)(1)— 
Net earnings (loss) attributable to Mosaic$(233)$(44)$(921)$(203)$47 $(6)$828 $157 
After tax Notable items included in earnings$(277)$(72)$(810)$(182)$$(93)$610 $(63)
Gross Margin Rate10 %10 %%%13 %15 %17 %19 %
Effective Tax Rate (including discrete tax)19 %133 %24 %42 %(4)%58 %(134)%27 %
Discrete Tax benefit (expense)$(10)$(16)$(41)$28 $$(2)$580 $(4)
Depreciation, Depletion and Amortization$221 $211 $233 $217 $215 $206 $208 $209 
Accretion Expense$13 $16 $17 $18 $17 $17 $17 $17 
Share-Based Compensation Expense$$$$(10)$$$12 $15 
Notable Items$347 $69 $1,113 $285 $20 $101 $(134)$50 
Adjusted EBITDA(b)
$360 $389 $227 $234 $383 $438 $508 $560 
Net cash provided by (used in) operating activities$507 $486 $278 $190 $809 $341 $238 $319 
Cash paid for interest (net of amount capitalized)92 14 86 14 88 90 
Cash paid for income taxes (net of refunds)10 11 (70)67 (93)11 21 83 
Net cash used in investing activities$(359)$(327)$(347)$(270)$(258)$(267)$(395)$(309)
Capital expenditures(295)(322)(340)(264)(258)(265)(385)(289)
Net cash (used in) provided by financing activities$(143)$105 $(66)$698 $(530)$(219)$(233)$122 
Cash dividends paid(19)(19)(19)(19)(19)(19)(19)87 
Effect of exchange rate changes on cash$11 $(24)$$(69)$(11)$(2)$39 $(20)
Net change in cash and cash equivalents$16 $240 $(126)$549 $10 $(147)$(351)$112 
Short-term debt$94 $88 $42 $1,008 $610 $216 $— $15 
Long-term debt (including current portion)4,585 4,576 4,572 4,572 4,587 4,578 4,578 4,470 
Cash & cash equivalents402 641 519 1,069 1,073 923 574 692 
Net debt$4,277 $4,023 $4,095 $4,511 $4,124 $3,871 $4,004 $3,793 
Segment Contributions (in millions)
Phosphates$917 $820 $698 $619 $763 $745 $990 $1,001 
Potash599 616 395 442 555 464 559 477 
Mosaic Fertilizantes833 1,388 864 731 787 1,140 823 764 
Corporate and Other(c)
(172)(71)119 (60)33 86 55 
Total net sales$2,177 $2,753 $2,076 $1,798 $2,045 $2,382 $2,458 $2,297 
Phosphates$(393)$(70)$(712)$(107)$(59)$(115)$134 $153 
Potash174 148 (452)94 124 87 95 125 
Mosaic Fertilizantes98 29 77 144 97 90 
Corporate and Other(c)
(25)(36)(36)(82)(56)(18)(31)(55)
Consolidated operating earnings$(242)$140 $(1,195)$(66)$86 $98 $295 $313 



Phosphates(d)
2,184 2,194 2,011 1,919 2,235 2,064 2,316 2,062 
Potash(d)
2,163 2,321 1,499 1,899 2,559 2,264 2,675 1,980 
Mosaic Fertilizantes2,101 3,424 2,192 2,077 2,558 3,588 2,341 2,064 
Corporate and Other333 348 538 223 501 648 629 475 
Total finished product tonnes sold ('000 tonnes)
6,781 8,287 6,240 6,118 7,853 8,564 7,961 6,581 
Sales of Performance Products ('000 tonnes)(e)
785 1,138 1,003 704 985 1,094 1,267 1,023 



The Mosaic Company - Phosphates Segment
Selected Calendar Quarter Financial Information
(Unaudited)
Q2 2019Q3 2019Q4 2019Q1 2020Q2 2020Q3 2020Q4 2020Q1 2021
Net Sales and Gross Margin (in millions, except per tonne)
Segment income statement
Net Sales$917 $820 $698 $619 $763 $745 $990 $1,001 
Cost of Goods Sold929 839 804 702 745 723 821 828 
Gross Margin$(12)$(19)$(106)$(83)$18 $22 $169 $173 
Notable Items Included in Gross Margin(5)(7)(16)(5)(8)— — — 
Adjusted Gross Margin(b)
$(7)$(12)$(90)$(78)$26 $22 $169 $173 
SG&A11 10 12 10 
Other operating (income) expense(r)
374 42 595 15 67 125 28 10 
Operating Earnings$(393)$(70)$(712)$(107)$(59)$(115)$134 $153 
Plus: Depreciation, Depletion and Amortization105 109 113 114 113 108 107 102 
Plus: Accretion Expense10 12 12 13 11 12 12 12 
Plus: Foreign Exchange Gain (Loss)(2)(2)14 (1)
Plus: Other Income (Expense)— 12 — — 
Less: Earnings (loss) from Consolidated Noncontrolling Interests(29)— — 
Plus: Notables Items371 593 (11)57 110 14 (4)
Adjusted EBITDA(b)
$86 $68 $33 $28 $124 $118 $266 $271 
Capital expenditures$122 $124 $179 $138 $122 $115 $163 $153 
Gross Margin $ / tonne of finished product$(7)$(10)$(52)$(43)$$11 $73 $84 
Adjusted Gross Margin $ / tonne of finished product$(5)$(6)$(45)$(41)$12 $11 $73 $84 
Gross margin as a percent of sales(1)%(2)%(15)%(13)%%%17 %17 %
Freight included in finished goods (in millions)$91 $86 $94 $76 $86 $85 $109 $97 
Idle/Turnaround costs (excluding notable items)$43 $18 $39 $35 $13 $25 $15 $41 
Operating Data
Sales volumes ('000 tonnes)(d)
DAP/MAP1,275 1,310 1,276 1,332 1,166 1,134 1,304 1,210 
Performance & other products(f)
766 769 608 486 957 822 877 724 
Other products(i)
144 114 127 101 112 108 135 128 
Total Finished Product(d)
2,184 2,194 2,011 1,919 2,235 2,064 2,316 2,062 
DAP selling price (fob plant)(t)
$345 $310 $266 $274 $287 $307 $363 $426 
Average finished product selling price (destination)(g)
$398 $355 $329 $317 $338 $354 $422 $477 
Production Volumes ('000 tonnes)
Total tonnes produced(h)
2,050 2,111 1,924 1,861 2,117 2,038 2,144 1,911 
Operating Rate85 %87 %79 %75 %85 %82 %86 %77 %
Raw Materials
Ammonia used in production$300 $308 $272 $276 $309 $311 $319 $281 
% manufactured ammonia used in production20 %15 %%17 %19 %23 %31 %23 %
Sulfur used in production$951 $985 $886 $816 $966 $907 $946 $841 
% prilled sulfur used in production17 %16 %14 %13 %17 %14 %19 %27 %
Realized costs ($/tonne)
Ammonia (tonne)(j)
$337 $306 $305 $309 $289 $273 $277 $316 
Sulfur (long ton)(k)
$138 $119 $104 $78 $76 $86 $93 $119 
Blended rock $63 $65 $61 $62 $61 $60 $61 $61 
Phosphate cash conversion costs, production / tonne(w)
$65 $63 $62 $65 $58 $63 $63 $63 
Cash costs of U.S. mined rock/production tonne(x)
$39 $39 $38 $35 $35 $39 $40 $36 
ARO cash spending (in millions)$26 $29 $24 $21 $26 $28 $29 $32 



MWSPC equity earnings (loss)$(12)$(23)$(26)$(21)$(31)$(34)$(11)$(8)
MWSPC total sales tonnes (DAP/MAP/NPK)482 505 623 546 540 487 565 612 



The Mosaic Company - Potash Segment
Selected Calendar Quarter Financial Information
(Unaudited)
Q2 2019Q3 2019Q4 2019Q1 2020Q2 2020Q3 2020Q4 2020Q1 2021
Net Sales and Gross Margin (in millions, except per tonne)
Segment income statement
Net Sales$599 $616 $395 $442 $555 $464 $559 $477 
Cost of Goods Sold418 458 303 333 424 356 439 337 
Gross Margin$181 $158 $92 $109 $131 $108 $120 $140 
Notable Items Included in Gross Margin— (12)(22)(22)(22)(19)(16)(22)
Adjusted Gross Margin(b)
$181 $170 $114 $131 $153 $127 $136 $162 
SG&A
Other operating (income) expense(p)
538 10 15 17 
Operating Earnings$174 $148 $(452)$94 $124 $87 $95 $125 
Plus: Depreciation, Depletion and Amortization79 63 76 70 70 69 72 80 
Plus: Accretion Expense
Plus: Foreign Exchange Gain (Loss)26 (20)27 (150)66 34 77 15 
Plus: Other Income (Expense)— — — — 
Plus: Notable Items(26)20 506 158 (66)(24)(67)(10)
Adjusted EBITDA(b)
$254 $215 $159 $175 $199 $169 $179 $212 
Capital expenditures$130 $153 $117 $98 $111 $119 $149 $97 
Gross Margin $ / tonne of finished product$84 $68 $61 $57 $51 $48 $45 $71 
Adjusted Gross Margin $ / tonne of finished product$84 $73 $76 $69 $60 $56 $51 $82 
Gross margin as a percent of sales30 %26 %23 %25 %24 %23 %21 %29 %
Supplemental Cost Information
Canadian resource taxes$56 $58 $13 $32 $52 $26 $36 $35 
Royalties$11 $$$10 $$$$
Brine inflow expenses(s)
$36 $32 $33 $33 $26 $28 $24 $23 
Freight(l)
$68 $79 $62 $74 $85 $73 $81 $78 
Idle/Turnaround costs (excluding notable items)$25 $49 $40 $$— $15 $27 $
Operating Data
Sales volumes ('000 tonnes)(d)
MOP1,919 2,099 1,313 1,709 2,282 2,030 2,435 1,747 
Performance & other products(m)
231 210 173 177 264 223 228 221 
Other products(i)
14 11 13 13 12 11 12 12 
Total Finished Product(d)
2,163 2,321 1,499 1,899 2,559 2,264 2,675 1,980 
Crop Nutrients North America761 906 625 832 977 837 942 876 
Crop Nutrients International1,277 1,283 745 947 1,447 1,327 1,612 967 
Non-Agricultural125 132 129 120 135 100 121 137 
Total Finished Product(d)
2,163 2,321 1,499 1,899 2,559 2,264 2,675 1,980 
MOP selling price (fob mine)(u)
$246 $235 $224 $200 $180 $170 $176 $200 
Average finished product selling price (destination)(g)
$277 $266 $264 $233 $217 $205 $209 $241 
Production Volumes ('000 tonnes)
Production Volume2,180 1,771 1,663 2,068 2,198 2,111 2,056 2,285 
Operating Rate83 %67 %63 %85 %91 %87 %85 %94 %
MOP cash costs of production including brine / production tonne(n)
$60 $61 $56 $57 $56 $52 $59 $64 



MOP cash costs of brine management / production tonne$28 $24 $21 $21 $15 $16 $21 $15 
ARO cash spending (in millions)$$$$$$$$
Average CAD / USD$1.338 $1.320 $1.320 $1.390 $1.387 $1.333 $1.304 $1.266 



The Mosaic Company - Mosaic Fertilizantes Segment
Selected Calendar Quarter Financial Information
(Unaudited)
Q2 2019Q3 2019Q4 2019Q1 2020Q2 2020Q3 2020Q4 2020Q1 2021
Net Sales and Gross Margin (in millions, except per tonne)
Segment income statement
Net Sales$833 $1,388 $864 $731 $787 $1,140 $823 $764 
Cost of Goods Sold798 1,256 794 665 686 963 747 661 
Gross Margin$35 $132 $70 $66 $101 $177 $76 $103 
Notable Items Included in Gross Margin— — — — — — — — 
Adjusted Gross Margin(b)
$35 $132 $70 $66 $101 $177 $76 $103 
SG&A22 23 34 24 19 17 21 18 
Other operating (income) expense11 11 31 13 16 (42)(5)
Operating Earnings$2 $98 $5 $29 $77 $144 $97 $90 
Plus: Depreciation, Depletion and Amortization32 34 38 28 27 25 25 23 
Plus: Accretion Expense
Plus: Foreign Exchange Gain (Loss)(3)(39)(81)(27)(3)(33)
Plus: Other Income (Expense)(2)(2)(2)(1)(2)(1)(1)(1)
Less: Earnings from Consolidated Noncontrolling Interests— — — — 
Plus: Notable Items35 28 90 31 14 (17)22 
Adjusted EBITDA(b)
$38 $126 $78 $68 $109 $181 $115 $104 
Capital expenditures$41 $43 $46 $25 $20 $28 $72 $39 
Gross Margin $ / tonne of finished product$17 $39 $32 $32 $39 $49 $32 $50