-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Abaw4osgUFmOQjxTatLe8R9dkKHSeltuhko1mR06mAPHxC9lWeY9Ex3rgURPYLpd Cl30d8V6vHBvYp/icXt5qg== /in/edgar/work/0000820626-00-000016/0000820626-00-000016.txt : 20001110 0000820626-00-000016.hdr.sgml : 20001110 ACCESSION NUMBER: 0000820626-00-000016 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000930 FILED AS OF DATE: 20001109 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PHOSPHATE RESOURCE PARTNERS LIMITED PARTNERSHIP CENTRAL INDEX KEY: 0000793421 STANDARD INDUSTRIAL CLASSIFICATION: [2870 ] IRS NUMBER: 363492467 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-09164 FILM NUMBER: 757705 BUSINESS ADDRESS: STREET 1: 2100 SANDERS ROAD CITY: NORTHBROOK STATE: IL ZIP: 60062 BUSINESS PHONE: 847-272-92 MAIL ADDRESS: STREET 1: 2100 SANDERS ROAD CITY: NORTHBROOK STATE: IL ZIP: 60062 FORMER COMPANY: FORMER CONFORMED NAME: FREEPORT MCMORAN RESOURCE PARTNERS LIMITED PARTNERSHIP DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: FREEPORT MCMORAN RESOURCE PARTNERS LP DATE OF NAME CHANGE: 19860618 10-Q 1 0001.txt FOR THE QUARTER ENDED 09/30/99 ============================================================================= SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2000 Commission file number 1-9164 Phosphate Resource Partners Limited Partnership (Exact name of Registrant as specified in its charter) Delaware 72-1067072 (State or other jurisdiction of (I.R.S. Employer Identification No.) incorporation or organization) 100 South Saunders Road Lake Forest, Illinois 60045 (847) 739-1200 (Address and telephone number, including area code, of registrant's principal executive offices) 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 . ------- ------- ============================================================================= PART I. FINANCIAL INFORMATION Item 1. Financial Statements. The accompanying interim condensed financial statements of Phosphate Resource Partners Limited Partnership (PLP) do not include all disclosures normally provided in annual financial statements. These financial statements, which should be read in conjunction with the financial statements contained in PLP's Annual Report on Form 10-K for the year ended December 31, 1999, are unaudited but include all adjustments which the management of IMC Global Inc. (IMC), the managing general partner of PLP, considers necessary for a fair presentation. These adjustments consist of normal recurring accruals. Interim results are not necessarily indicative of the results expected for the full year. CONDENSED STATEMENT OF OPERATIONS (In millions, except per unit amounts) (Unaudited)
Three months ended Nine months ended September 30 September 30 2000 1999 2000 1999 - ----------------------------------------------------------------------------- Net sales $ 117.0 $ 134.8 $ 354.4 $ 471.2 Cost of goods sold 108.7 111.1 309.9 365.1 ------- ------- ------- ------- Gross margins 8.3 23.7 44.5 106.1 Selling, general and administrative expenses 6.7 6.8 21.8 21.0 Restructuring activity 0.5 - (0.5) - ------- ------- ------- ------- Operating earnings 1.1 16.9 23.2 85.1 Interest expense 10.5 10.0 30.7 29.7 Other (income) expense, net 0.1 (0.7) (0.3) (3.4) ------- ------- ------- ------- Earnings (loss) before cumulative effect of a change in accounting principal (9.5) 7.6 (7.2) 58.8 Loss from discontinued operations - (3.1) - (2.7) ------- ------- ------- ------- Earnings (loss) from cumulative effect of a change in accounting principle (9.5) 4.5 (7.2) 56.1 Cumulative effect of a change in accounting principle - - - (2.6) ------- ------- -------- ------- Earnings (loss) $ (9.5) $ 4.5 $ (7.2) $ 53.5 ======= ======= ======= ======= Earnings (loss) per unit: Earnings (loss) from continuing operations before cumulative effect of a change in accounting principle $ (0.09) $ 0.07 $ (0.07) $ 0.57 Loss from discontinued operations - (0.03) - (0.03) Cumulative effect of a change in accounting principle - - - (0.02) ------- ------- ------- ------- Earnings (loss) per unit $ (0.09) $ 0.04 $ (0.07) $ 0.52 ======= ======= ======= ======= Average units outstanding 103.5 103.5 103.5 103.5 Distributions paid per publicly held unit $ - $ 0.30 $ 0.09 $ 0.43 (See Notes to Condensed Financial Statements)
CONDENSED BALANCE SHEET (In millions)
(Unaudited) Assets September 30, 2000 December 31, 2000 - ----------------------------------------------------------------------------- Current assets: Cash and cash equivalents $ - $ 41.2 Receivables, net 3.1 23.8 Inventories, net 85.3 92.4 Other current assets - 0.3 ------- ------- Total current assets 88.4 157.7 Property, plant and equipment, net 438.8 434.0 Other assets 21.6 20.1 ------- ------- Total assets $ 548.8 $ 611.8 ======= ======= Liabilities and Partners' Deficit - ----------------------------------------------------------------------------- Current liabilities: Accounts payable and accrued liabilities $ 88.6 $ 89.1 Short-term debt and current maturities of long-term debt 4.3 4.3 ------- ------- Total current liabilities 92.9 93.4 Long-term debt, less current maturities 501.6 543.0 Other noncurrent liabilities 198.1 202.8 Partners' deficit (243.8) (227.4) ------- ------- Total liabilities and partners' deficit $ 548.8 $ 611.8 ======= ======= (See Notes to Condensed Financial Statements)
CONDENSED STATEMENT OF CASH FLOWS (In millions) (Unaudited)
Nine months ended September 30 2000 1999 - ------------------------------------------------------------------------- Cash Flows from Operating Activities Earnings (loss) $ (7.2) $ 53.5 Adjustments to reconcile earnings (loss) to net cash provided by operating activities: Depreciation, depletion and amortization 17.1 19.8 Other charges and credits, net (5.8) (20.6) Changes in: Receivables 20.7 10.2 Inventories 7.1 20.5 Other current assets 0.3 0.6 Accounts payable and accrued liabilities (0.5) (6.3) ------ ------ Net cash provided by operating activities 31.7 77.7 ------ ------ Cash Flows from Investing Activities Capital expenditures (22.6) (41.8) Proceeds from sale of investment - 12.8 Proceeds from sale of property, plant and equipment 0.5 4.8 ------ ------ Net cash used in investing activities (22.1) (24.2) ------ ------ Net cash provided before financing activities 9.6 53.5 ------ ------ Cash Flows from Financing Activities Cash distributions to unitholders (9.3) (44.5) Payments of long-term debt, net (59.7) (17.2) Proceeds from issuance of long-term debt 18.2 0.4 ------ ------ Net cash used in financing activities (50.8) (61.3) ------ ------ Net change in cash and cash equivalents (41.2) (7.8) Cash and cash equivalents - beginning of period 41.2 10.8 ------ ------ Cash and cash equivalents - end of period $ - $ 3.0 ====== ====== (See Notes to Condensed Financial Statements)
NOTES TO CONDENSED FINANCIAL STATEMENTS (Dollars in millions, except per unit amounts) 1.Restructuring Activities ------------------------- 1999 Restructuring Charge During the fourth quarter of 1999, PLP announced and began implementing a rightsizing program (Rightsizing Program) which was designed to simplify and focus PLP's core businesses. The key components of the Rightsizing Program were: (i) the shutdown and permanent closure of the Nichols and Payne Creek facilities of IMC Phosphates Company (IMC Phosphates), formerly known as IMC-Agrico Company, resulting from an optimization program that will reduce rock and concentrate production costs through higher utilization rates at the lowest-cost facilities; and (ii) headcount reductions. In conjunction with the Rightsizing Program, PLP recorded a special charge of $52.3 million, or $0.51 per unit, in the fourth quarter of 1999. Activity related to accruals for the Rightsizing Program during the period January 1, 2000 to September 30, 2000 was as follows: Accrual as of Accrual as of January 1, 2000 Cash Paid September 30, 2000 --------------- --------- ------------------ Non-employee exit costs: Demolition and closure costs $ 18.5 $ 3.9 $ 14.6 Other 0.5 0.3 0.2 Employee headcount reductions: Severance benefits 6.2 4.9 1.3 ------ ------ ------ Total $ 25.2 $ 9.1 $ 16.1 ====== ====== ======
The timing and costs of the Rightsizing Program are generally on schedule with the time and dollar estimates disclosed in the fourth quarter of 1999. 1998 Restructuring Charge During the fourth quarter of 1998, PLP developed and began execution of a plan to improve profitability (Project Profit). Project Profit was comprised of four major initiatives: (i) the combination of certain activities within IMC's potash and phosphates business units in an effort to realize certain operating and staff function synergies; (ii) restructuring of the phosphate rock mining and concentrated phosphate production/distribution operations and processes in an effort to reduce costs; (iii) simplification of current business activities by eliminating businesses not deemed part of PLP's core competencies; and (iv) reduction of operational and administrative headcount. In conjunction with Project Profit, PLP recorded a special charge of $61.8 million, or $0.60 per unit, in the fourth quarter of 1998. Activity related to accruals for Project Profit during the period January 1, 2000 to September 30, 2000 was as follows: Accrual as of Accrual as of January 1, 2000 Cash Paid September 30, 2000 --------------- --------- ------------------ Non-employee exit costs: Demolition and closure costs $ 10.2 $ 4.5 $ 5.7 Idled leased transportation equipment 3.7 1.5 2.2 Other 0.6 0.1 0.5 Employee headcount reductions: Severance benefits 0.1 0.1 - ------ ------ ------ Total $ 14.6 $ 6.2 $ 8.4 ====== ====== ======
The timing and costs of Project Profit are generally on schedule with the time and dollar estimates disclosed in the fourth quarter of 1999. As part of Project Profit, PLP had written off certain assets in 1998. However, in April and July 2000, certain of these assets were sold to third parties. This activity was recorded in the Statement of Operations as an adjustment to the restructuring charge previously recognized for Project Profit. 2.Discontinued Operations ----------------------- In the fourth quarter of 1999, PLP decided to discontinue its oil and gas business which primarily consisted of its interest in a multi-year oil and natural gas exploration program (Exploration Program) with McMoRan Exploration Company (MMR). PLP sold its interest in the Exploration Program for proceeds of $32.0 million. The Statement of Operations has been restated for the applicable 1999 periods presented to report the operating results of the oil and gas business as discontinued operations in accordance with Accounting Principles Board Opinion No. 30, "Reporting the Results of Operations." 3.Adoption of SOP 98-5 -------------------- In April 1998, the American Institute of Certified Public Accountants issued Statement of Position (SOP) 98-5, "Reporting on the Costs of Start-Up Activities," which mandated that costs related to start-up activities be expensed as incurred, effective January 1, 1999. Prior to the adoption of SOP 98-5, PLP capitalized its start- up costs (i.e., pre-operating costs). PLP adopted the provisions of SOP 98-5 in its financial statements beginning January 1, 1999 and, accordingly, recorded a charge for the cumulative effect of an accounting change of $2.6 million, or $0.02 per unit, in order to expense start-up costs that had been previously capitalized. 4.Sale of Accounts Receivable --------------------------- In September 2000, IMC entered into an accounts receivable securitization facility (Securitization Facility) which expires on September 28, 2001 unless extended, and in any event no later than September 26, 2003. The Securitization Facility allows IMC and certain of its subsidiaries, including IMC Phosphates, to sell without recorse, on an on-going basis, certain of their trade accounts receivable to a special purpose vehicle (SPV). The SPV in turn may sell an interest in such receivables purchased from IMC and its subsidiaries to a financial conduit for up to a $100.0 million net investment. The proceeds received by the SPV from the financial conduit are used to pay IMC and its subsidiaries for a portion of the purchase price of the receivables. The SPV pays for the remainder of the purchase price of the receivables through the issuance of notes payable to IMC, which bear interest at the Federal Runds Rate (6.5% at September 30, 2000) and are due no later than one year after the termination of the Securitization Facility. At September 30, 2000 PLP's proportionate share of the outstanding balance of IMC Phosphates trade accounts receivable sold to the SPV was $28.5 million. Net proceeds of the sale of receivable by IMC Phosphates reduced working capital loans payable to IMC. 5.Inventories ----------- September 30, 2000 December 31, 1999 ------------------ ----------------- Products (principally finished) $ 68.8 $ 74.1 Operating materials and supplies 17.1 19.7 ------ ------ 85.9 93.8 Less: Inventories allowances 0.6 1.4 ------ ------ Inventories, net $ 85.3 $ 92.4 ====== ======
6.Recently Issued Accounting Guidance ----------------------------------- In December 1999, the Securities and Exchange Commission (SEC) issued Staff Accounting Bulletin (SAB) No. 101, "Revenue Recognition in Financial Statements," which provides guidance regarding revenue recognition. PLP is in the process of determining the impact, if any, this new guidance will have on PLP's financial statements. The effect of any change will be reflected by the cumulative effect of an accounting change as of January 1, 2000. In May 2000, the SEC deferred the required effective date for implementation of SAB No. 101 until the fourth quarter of 2000. During the second quarter of 2000, the Financial Accounting Standards Board issued Emerging Issues Task Force (EITF) 00-01, "Investor Balance Sheet and Income Statement Display under the Equity Method for Investments in Certain Partnerships and Other Ventures," which will require PLP to account for its investment in IMC Phosphates using the equity method rather than the current proportional consolidation method. Under the equity method, PLP's investment in IMC Phosphates will be displayed as a single amount in PLP's Balance Sheet while PLP's share of IMC Phosphates earnings or losses will be displayed as a single amount in PLP's Statement of Operations. Under the current proportional consolidation method, IMC Phosphates' assets and liabilities are displayed, on a proportionate gross basis, in the PLP Balance Sheet and the related results of operations are similarly displayed in PLP's Statement of Operations. PLP will adopt this change in accounting methodology in the fourth quarter of 2000, as required by EITF 00-01, and will restate prior periods' financial statements to reflect this new accounting method. Effective in the fourth quarter 2000, PLP will adopt the provisions of EITF Issue No. 00-10, "Accounting for Shipping and Handling Fees and Costs," which provides guidance regarding classification of shipping and handling costs in the Consolidated Statement of Operations. PLP is in the process of determining the impact this reclassification of costs will have on PLP's financial statements. PLP believes that Statement of Financial Accounting Standards No. 133, "Accounting for Derivative Instruments and Hedging Activities," which PLP is required to adopt on January 1, 2001, will not have a material impact on PLP's financial statements. Item 2.Management's Discussion and Analysis of Financial Condition and Results of Operations.(1) Results of Operations --------------------- Three months ended September 30, 2000 vs. three months ended September 30, 1999 ------------------------------------------------------------ Overview PLP, through its joint venture interest in IMC Phosphates, is one of the world's largest and lowest cost producers, marketers and distributors of phosphate crop nutrients and animal feed ingredients, with operations in central Florida and on the Mississippi River in Louisiana. IMC Phosphates is 41.5 percent owned by PLP and 58.5 percent owned by IMC. The dollar amounts included throughout this discussion are shown at PLP's 41.5 percent ownership percentage, unless otherwise noted. PLP's net sales of $117.0 million in the third quarter of 2000 decreased 13 percent from $134.8 million in the year-earlier period. PLP's gross margins of $8.3 million in the third quarter of 2000 represented a 65 percent decrease from gross margins of $23.7 million in the third quarter of 1999. The loss from continuing operations for the third quarter of 2000 was $9.5 million, or $0.09 per unit. Earnings from continuing operations for the third quarter of 1999 were $7.6 million, or $0.07 per unit. Earnings for the third quarter of 1999 of $4.5 million, or $0.04 per unit, included a loss from discontinued operations of $3.1 million, or $0.03 per unit. IMC Phosphates Company IMC Phosphates' net sales for the third quarter of 2000 declined 13 percent to $117.0 million compared to $134.8 million for the same period last year largely as a result of lower average sales realizations and lower volumes. Lower average concentrate sales prices, driven by decreased average diammonium phosphate (DAP) realizations, reduced sales by $13.4 million. Average DAP prices fell 14 percent to $134 per short ton in the third quarter of 2000 from $156 per short ton in the third quarter of 1999. Concentrated phosphates domestic sales volumes, primarily DAP, rose 36 percent in the third quarter of 2000 while export shipments fell 20 percent. Overall, decreased shipments of concentrated phosphates, primarily DAP, unfavorably impacted net sales by $4.0 million. Gross margins decreased 74 percent to $5.4 million for the third quarter of 2000 compared to $20.8 million for the third quarter of last year. This decrease was mainly the result of the lower prices discussed above, higher idle plant costs from temporary production cutbacks and increased ammonia and natural gas costs, partially offset by savings from cost reduction programs of approximately $6.5 million and lower sulphur costs. Demand for phosphate products remained depressed during the third quarter of 2000 and IMC Phosphates responded with the curtailment of full operating capacity to stabilize phosphate inventories. IMC Phosphates balanced phosphate rock inventory with demand by suspending production throughout all phosphate mining operations for an approximate two-week period during the third quarter of 2000. Additionally, IMC Phosphates curtailed phosphate fertilizer production at its Louisiana facilities for approximately two months in the third quarter of 2000; however, partial production resumed in September 2000 to fulfill customer requirements. Nine months ended September 30, 2000 vs. nine months ended September 30, 1999 ---------------------------------------------------------------- Overview Net sales for the first nine months of 2000 of $354.4 million decreased 25 percent from $471.2 million in the year-earlier period. PLP's gross margins of $44.5 million for the first nine months of 2000 represented a 58 percent decrease from gross margins of $106.1 million in the first nine months of 1999. The loss from continuing operations for the first nine months of 2000 was $7.2 million, or $0.07 per unit. Earnings from continuing operations, before the cumulative effect of a change in accounting principle, for the first nine months of 1999 were $58.8 million, or $0.57 per unit. Earnings for the first nine months of 1999 of $53.5 million, or $0.52 per unit, included a loss from discontinued operations of $2.7 million, or $0.03 per unit, and a cumulative effect of a change in accounting principle of $2.6 million, or $0.02 per unit. IMC Phosphates Company IMC Phosphates' net sales for the first nine months of 2000 declined 25 percent to $354.4 million compared to $471.2 million for the same period last year largely as a result of lower phosphate average sales realizations and volumes. Lower average concentrate sales prices, driven by decreased average DAP realizations, reduced sales by $67.0 million. Average DAP prices fell 21 percent to $132 per short ton in the first nine months of 2000 from $167 per short ton in the first nine months of 1999. Concentrated phosphates export sales volumes, primarily DAP, fell 27 percent for the first nine months of 2000 while domestic shipments rose 13 percent. Overall, decreased shipments of concentrated phosphates unfavorably impacted net sales by an additional $45.7 million. Also, sales of uranium and urea decreased $8.4 million as a result of exiting these two businesses as part of Project Profit. Gross margins decreased 63 percent to $35.9 million for the first nine months of 2000 compared to $97.5 million for the first nine months of the prior year. This decrease was mainly the result of the lower prices and volumes discussed above, partially offset by savings from cost reduction programs of approximately $22.4 million. Other (Income) Expense, Net Other (income) expense, net for the first nine months of 2000 decreased $3.1 million from the prior year primarily as a result of the absence of a gain on the sale of an IMC Phosphates investment, which occurred in the first quarter of 1999. Restructuring Activities ------------------------ The timing and costs of the Rightsizing Program and Project Profit are generally on schedule with the time and dollar estimates disclosed in the fourth quarter of 1999. See Note 1 of Notes to Condensed Financial Statements. Sale of Accounts Receivables ---------------------------- In September 2000, IMC entered into a Securitization Facility which expires on September 28, 2001, unless extended, and in any event no later than September 26, 2003. The Securitization Facility allows IMC and certain of its subsidiaries, including IMC Phosphates, to sell without recorse, on an on-going basis, certain of their trade accounts receivable to a SPV. The SPV in turn may sell an interest in such receivables purchased from IMC and its subsidiaries to a financial conduit for up to a $100.0 million net investment. The proceeds received by the SPV from the financial conduit are used to pay IMC and its subsidiaries for a portion of the purchase price of the receivables. The SPV pays for the remainder of the purchase price of the receivables through the issuance of notes payable to IMC, which bear interest at the Federal Funds Rate (6.5% at September 30, 2000) and are due no later than one year after the termination of the Securitization Facility. At September 30, 2000 PLP's proporationate share of the outstanding balance of IMC Phosphates trade accounts receivable sold to the SPV was $28.5 million. Net proceeds of the sale of receivables by IMC Phosphates reduced working capital loans payable to IMC. Capital Resources and Liquidity ------------------------------- PLP generates cash through its joint venture operations in IMC Phosphates and has sufficient borrowing capacity to meet its operating and discretionary spending requirements. Net cash provided by operating activities totaled $31.7 million for the first nine months of 2000 versus net cash provided by operating activities of $77.7 million for the same period in 1999. The reduction in cash provided by operating activities was primarily caused by lower earnings, partially offset by cash proceeds from the accounts receivable securitization. Net cash used in investing activities for the first nine months of 2000 decreased to $22.1 million from $24.2 million in the same period one year ago. This decline was mainly the result of a reduction in capital expenditures by IMC Phosphates and the absence of capital expenditures for oil and gas activities as a result of the sale of the Exploration Program in the fourth quarter of 1999, partially offset by the absence of proceeds from the sale of PLP's investment in MMR stock. Net cash used in financing activities for the nine-month period ending September 30, 2000 was $50.8 million compared to $61.3 million for the same period in 1999. This decrease was primarily attributable to a reduction in cash distributions to unitholders and an increase in net debt payments as a consequence of a reduction in working capital loans payable to IMC. Item 3.Market Risk. PLP is exposed to the impact of interest rate changes on borrowings and the impact of fluctuations in the purchase price of natural gas, ammonia and sulphur consumed in operations, as well as changes in the fair value of its financial instruments. PLP periodically enters into natural gas forward purchase contracts with maturities of typically one year or less in order to reduce the effects of changing raw material prices, but not for trading purposes. At September 30, 2000, PLP's exposure to these market risk factors was not significant and had not materially changed from December 31, 1999. Part II.OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K. (a) Exhibits. Exhibit No. Description ----------- -------------------------------------------- 27 Financial Data Schedule (b) Reports on Form 8-K. No reports on Form 8-K have been filed during the quarter ended September 30, 2000. * * * * * * * * * * * * * * * * 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 thereunto duly authorized. PHOSPHATE RESOURCE PARTNERS LIMITED PARTNERSHIP By: IMC GLOBAL INC., Its Administrative Managing General Partner By: /s/ Anne M. Scavone ------------------------------ Anne M. Scavone Vice President and Controller (on behalf of the Registrant and as Chief Accounting Officer) Date: November 9, 2000 PHOSPHATE RESOURCE PARTNERS LIMITED PARTNERSHIP Exhibit Index Filed with Exhibit Incorporated Electronic No. Description Herein by Reference to Submission - ------- ----------------------------- ---------------------- ---------- 27 PLP Financial Data Schedule X - --------------------------- (1)All statements, other than statements of historical fact, appearing under Part I, Item 2, "Management's Discussion and Analysis of Financial Condition and Results of Operations," constitute "forward- looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Factors that could cause actual results to differ materially from those expressed or implied by the forward-looking statements include, but are not limited to, the following: general business and economic conditions and governmental policies affecting the agricultural industry in localities where PLP or its customers operate; weather conditions; the impact of competitive products; pressure on prices realized by PLP for its products; constraints on supplies of raw materials used in manufacturing certain of PLP's products; capacity constraints limiting the production of certain products; difficulties or delays in the development, production, testing and marketing of products; difficulties or delays in receiving required governmental and regulatory approvals; market acceptance issues, including the failure of products to generate anticipated sales levels; difficulties in integrating acquired businesses and in realizing related cost savings and other benefits; the effects of and change in trade, monetary, environmental and fiscal policies, laws and regulations; foreign exchange rates and fluctuations in those rates; the costs and effects of legal proceedings, including environmental, and administrative proceedings involving PLP; and other risk factors reported from time to time in PLP's Securities and Exchange Commission reports. EX-27 2 0002.txt FINANCIAL DATA SCHEDULE
5 1000 9-MOS DEC-31-2000 SEP-30-2000 0 0 3,100 0 85,300 88,400 974,400 535,600 548,800 92,900 501,600 0 0 0 (243,800) 548,800 354,400 354,400 309,900 331,700 (800) 0 30,700 (7,200) 0 (7,200) 0 0 0 (7,200) (0.07) (0.07)
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