Cf Industries Holdings, Inc. · NYSE:CF
Cf Industries — Q1 2019 Earnings Presentation
12 slides from Cf Industries's earnings presentation, May 2, 2019
Slide 1: Safe harbor statement
Safe harbor statement All statements in this communication by CF Industries Holdings, Inc. (together with its subsidiaries, the “Company”), other than those relating to historical facts, are forward-looking statements. Forward-looking statements can generally be identified by their use of terms such
Slide 2: Note regarding non-GAAP financial measures
Note regarding non-GAAP financial measures The company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). Management believes that EBITDA, adjusted EBITDA, free cash flow, free cash flow as a percentage of adjusted EBITDA, and free cash flow yield,
Slide 3: First quarter 2019 results
First quarter 2019 results • • • Q1 net earnings of $90 million, or $0.40 per diluted share EBITDA(1) of $301 million and adjusted EBITDA(1) of $305 million The company repurchased approximately 1.5 million shares during the quarter under the previously announced $1 billion share repurchase program
Slide 4: Financial results - first quarter 2019
Financial results - first quarter 2019 (1) (2) (3) (4) Depreciation and amortization was $188 million for the three months ended March 31, 2019, and $193 million for the three months ended March 31, 2018 See appendix for reconciliation of EBITDA and adjusted EBITDA Includes the cost of natural gas a
Slide 5: CF generated the highest free cash flow compared to peers
CF generated the highest free cash flow compared to peers 2018 Cash from operations less capital expenditures and less cash distributions to noncontrolling interests(1) In millions, except percentages and share price CF $1,497 (422) (139) Nutrien $2,052 (1,405) - Mosaic $1,410 (955) - OCI $672 (293)
Slide 6: Capital Allocation
Capital Allocation • Pursue growth within our strategic fairway, where returns exceed the risk-adjusted cost of capital Consistently return excess cash to shareholders in a timely fashion through dividends and share repurchases • • Repurchased approximately 1.5 million shares during the quarter unde
Slide 7: Balanced Approach to Capital Allocation
Balanced Approach to Capital Allocation 110.2 111.6 99.2 99.2 99.2 90.4 52.0 15.3 2012 2013201420152016 20172018 2019 Diluted Weighted-Avg Shares Outstanding (in millions) 323.5 296.0 256.7236.1233.1 233.9233.8 224.6 Source: Factset, Company filings. (1) Includes the effect of approximately 1.5 mill
Slide 8: Global market overview
Global market overview • CF continues to expect strong nitrogen fertilizer demand in N. America during 1H 2019 due to expected increase in corn planting compared to 2018 Weather in Q4 2018 limited ammonia applications, suggesting a nitrogen deficit that will need to be made up by spring applications
Slide 9: Global market overview
Global market overview North American Market Dynamics Global Overview OCF CF continues to expect strong nitrogen fertilizer demand in N. America during 1H 2019 due to expected increase in corn planting compared to 2018 Weather in Q4 2018 limited ammonia applications, suggesting a nitrogen deficit th
Slide 10: Non-GAAP: reconciliation of Net Earnings to EBITDA and Adjusted EBITDA
Non-GAAP: reconciliation of Net Earnings to EBITDA and Adjusted EBITDA 2 (5) loans (1) For the three months ended March 31, 2019, amount relates only to CF Industries Nitrogen, LLC (CFN), as we purchased the remaining publicly traded common units of Terra Nitrogen Company, LP (TNCLP) on April 2, 201
Slide 11: Non-GAAP: reconciliation of Net Earnings to EBITDA and Adjusted EBITDA
Non-GAAP: reconciliation of Net Earnings to EBITDA and Adjusted EBITDA (138) interests (1) (2) (3) Represents proceeds related to a property insurance claim at one of our nitrogen complexes. Loan fee amortization is included in both interest expense – net and depreciation and amortization. Gain on f
Slide 12: Non-GAAP: reconciliation of Net Earnings to EBITDA and Adjusted EBITDA
Non-GAAP: reconciliation of Net Earnings to EBITDA and Adjusted EBITDA Net earnings $ 428 Less: Net earings atbutabe to noncontroling (138) Net earnings attributable to common stockholders 230 Interest expense - net 228 Income tax provision 119 Depreciation and amortization 888 Less other adjustment
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