Cf Industries Holdings, Inc. · NYSE:CF
Cf Industries — Q1 2011 Earnings Presentation
13 slides from Cf Industries's earnings presentation, May 6, 2011
Slide 1: 2011 First 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 First Quarter Financial Results May 6, 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 Q1 2010 Q1 Net sales $ 1,174 $ 502 Gross margin 525 129 - As percent of sales 45% 26% Net earnings (loss) attributable to common stockholders $ 282 $ (4) Earnings (loss) per diluted share 3.91 (0.09) Cash flow provided by operations 6
Slide 4: Record Profits and Cash Flow
Record Profits and Cash Flow Any-quarter record First quarter record 2006 2007 2008 2009 2010 2011 Earnings per Share Operating Cash Flow (millions)
Slide 5: Nitrogen Segment Results
Nitrogen Segment Results Source: Green Markets 2009 2010 2011 In millions, except as noted 2011 Q1 H/(L) 2010 Q1 H/(L) 2010 Q4 Sales $ 926 $ 599 $ (77) Gross margin 443 345 22 - Percent 48% 18 pts 6 pts Volume (000 st) 2,841 1,643 (509) Average selling prices ($/st) - Ammonia $ 494 $ 173 $ 42 - Urea
Slide 6: Low Gas Prices Despite Strong Demand
Low Gas Prices Despite Strong Demand Storage inventories reached a new record high in November, exceeding the five year average by nearly 400 BCF Winter 2010/2011 was the coldest in a decade, which boosted heating demand and erased nearly all of the surplus storage compared to the five year average
Slide 7: Phosphate Segment Results
Phosphate Segment Results Source: Green Markets In millions, except as noted 2011 Q1 H/(L) 2010 Q1 H/(L) 2010 Q4 Sales $ 248 $ 73 $ 13 Gross margin 83 51 20 - Percent 33% 15 pts 6 pts Volume (000 st) 440 (40) (37) - DAP 331 (43) (23) - MAP 109 3 (14) - Domestic 394 5 1 - Export 46 (45) (38) Average
Slide 8: EBITDA and Selected Items
EBITDA and Selected Items (in millions) Quarter ended March 31, 2011 2010 Net earnings (loss) attributable to common stockholders $ 282.0 $ (4.4) Interest expense (income) – net 51.8 0.1 Income taxes 159.1 (4.5) Depreciation, depletion and amortization 118.5 28.3 Less: Other adjustments(1) (26.3) (0
Slide 9: First Quarter Accomplishments
First Quarter Accomplishments Delivered strong earnings and cash flow First quarter record sales, net earnings and EPS Any quarter record cash flow from operations Completed planned debt reduction Retired $1.2 billion term loan in about eleven months Achieved outstanding production levels Phosphate
Slide 10: Projected U.S. Corn Plantings
Projected U.S. Corn Plantings (million acres) Source: USDA 94 92 90 88 86 84 2009 Actual 2010 Actual 2011 Projected 2012 Projected 2013 Projected 2014 Projected 2015 Projected
Slide 11: Wet Weather
Wet Weather No change or minor reduction in planted acreage Mix shift from pre-plant ammonia to urea and UAN Later end to ammonia side-dress season Logistical challenges Likely Impact Precipitation as a Percent of Normal March 6, 2011 through May 4, 2011 Source: HPRCC Percent
Slide 12: Outlook/Summary
Outlook/Summary High crop prices and farm profitability support strong plantings and nutrient prices Wet weather has slowed application and planting Adding support to corn prices Could lead to mix shift from ammonia to urea/UAN Conservative stocking practices bode well for summer/fall prices Subdued
Slide 13: Non-GAAP Information
Non-GAAP Information (in millions) Reconciliation of debt to net debt (net cash): March 31, 2011 March 31, 2010 Total debt $ 1,618.1 $ 4.9 Less: cash, cash equivalents and short-term investments 1,137.3 1,035.7 Plus: customer advances 747.3 282.5 Net debt (net cash) $ 1,228.1 $ (748.3) Net debt (net
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