Cf Industries Holdings, Inc. · NYSE:CF
Cf Industries — Q3 2011 Earnings Presentation
13 slides from Cf Industries's earnings presentation, Nov 2, 2011
Slide 1: 2011 Third Quarter Financial Results
Corporate Development Supply Chain Sales Finance Legal Operations Human Resources Dv Sc Sa Fi Le Op Hr CF Industries NYSE: CF 2011 Third Quarter Financial Results November 2, 2011
Slide 2: Forward-looking statements
Certain statements contained in this communication may constitute "forward-looking statements." All statements in this communication, other than those relating to historical information or current condition, are forward-looking statements. These forward-looking statements are subject to a number of
Slide 3: Financial Highlights
Financial Highlights In millions, except percentages and EPS 2011 Q3 2010 Q3 Net sales $ 1,404 $ 917 Gross margin 638 170 - As percent of sales 45% 19% EBITDA(1) $ 641 $ 216 Net earnings attributable to common stockholders 331 48 Earnings per diluted share 4.73 0.67 Cash flow provided by operations
Slide 4: Record Profits and Cash Flow
Record Profits and Cash Flow 2006 2007 2008 2009 2010 2011 Earnings per Share Operating Cash Flow (millions) Any-quarter record Third quarter record
Slide 5: Nitrogen Segment Results
Nitrogen Segment Results Source: Green Markets 2009 2010 2011 In millions, except as noted 2011 Q3 H/(L) 2010 Q3 H/(L) 2011 Q2 Sales $ 1,118 $ 383 $ (387) Gross margin 552 411 (231) - Percent 49% 30 pts (3) pts Volume (000 st) 3,043 62 (731) Average selling prices ($/st) - Ammonia $ 552 $ 158 $ (44)
Slide 6: Phosphate Segment Results
Phosphate Segment Results Source: Green Markets In millions, except as noted 2011 Q3 H/(L) 2010 Q3 H/(L) 2011 Q2 Sales $ 286 $ 104 $ (11) Gross margin 86 57 1 - Percent 30% 15 pts 2 pts Volume (000 st) 505 54 (33) - DAP 388 59 6 - MAP 117 (5) (39) - Domestic 265 5 (33) - Export 240 49 -- Average sel
Slide 7: EBITDA and Selected Items
EBITDA and Selected Items (in millions; includes Terra results from Apr. 5, 2010) Quarter ended September 30, Nine Months ended September 30, 2011 2010 2011 2010 Net earnings attributable to common stockholders $ 330.9 $ 48.2 $ 1,100.3 $ 148.9 Interest expense (income) – net 31.8 58.0 113.5 169.6 In
Slide 8: Third Quarter Accomplishments
Third Quarter Accomplishments Delivered strong earnings and cash flow Record third quarter sales, net earnings and EPS Any-quarter record cash flow from operations Operated effectively despite logistical challenges Achieved 100% utilization of ammonia capacity for third consecutive quarter Achieved
Slide 9: Net Debt
Net Debt Millions See slide 13 for reconciliation of net debt $1,070
Slide 10: Capital Deployment
Capital Deployment Fast start to $1.5 billion share repurchase program Repurchased 5.6 million shares in Q3 for $878 million Settled expenditures in the quarter were $801 million Including October transactions, deployed $1.0 billion to repurchase 6.5 million shares at an average price of $153.49 Mad
Slide 11: Repurchase Impact on EPS
Repurchase Impact on EPS Share repurchase program reduced average share count by 2.4 million in Q3 Increased Q3 EPS by $0.16 Much of the average share count benefit of the 6.5 million shares repurchased to date will occur in Q4 Weighted-Average Diluted Share Count (millions)
Slide 12: Outlook/Summary
Outlook/Summary Favorable weather has accelerated harvest and set conditions for a good fall application season High farm income to facilitate fall purchases of crop inputs Sustained high crop prices and plantings, consistent with very tight corn stocks-to-use ratio Tight global fertilizer supply/de
Slide 13: Non-GAAP Information
Non-GAAP Information Net debt (net cash) is defined as total debt minus cash, cash equivalents and short-term investments, plus customer advances. We include customer advances in this calculation to reflect the liability associated with our obligations to supply fertilizer in the future, which offse
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