Company Achieved Record Sales and Production Volumes
Cash Generation of $148 Million, Cash on Balance Sheet of $1.3 Billion
Uneven Pricing Environment Expected Through Rest of 2017 for Global
Nitrogen Market
DEERFIELD, Ill.--(BUSINESS WIRE)--
CF Industries Holdings, Inc. (NYSE: CF), the global leader in nitrogen
fertilizer manufacturing and distribution, today announced results for
its first quarter ended March 31, 2017.
First Quarter Highlights
-
Net loss of $23 million, or $0.10 per diluted share; adjusted net
earnings(1) of $11 million or $0.05 per diluted share(1)
-
EBITDA(2) of $218 million; adjusted EBITDA(2) of
$272 million
-
Highest sales volume for any quarter in company's history, 4.75
million tons
-
Largest production volume for any quarter in company's history
Overview of Results
CF Industries Holdings, Inc., today announced a first quarter 2017 net
loss attributable to common stockholders of $23 million, or $0.10 per
diluted share, and adjusted net earnings of $11 million, or $0.05 per
diluted share. First quarter 2017 EBITDA was $218 million, and adjusted
EBITDA was $272 million. These results compare to first quarter 2016 net
earnings attributable to common stockholders of $26 million, or $0.11
per diluted share; adjusted net earnings for the first quarter 2016 of
$100 million, or $0.43 per diluted share; EBITDA of $207 million; and
adjusted EBITDA of $300 million. First quarter 2017 results include a
realized gain on natural gas hedges of $1 million, compared to a
realized loss on natural gas hedges of $56 million for the first quarter
of 2016.
“Outstanding execution by our team across the CF system delivered
company record sales and production volumes in the first quarter, and we
increased cash on our balance sheet as a result," said Tony Will,
president and chief executive officer, CF Industries Holdings, Inc.
"This high level of performance, paired with our enduring structural and
operational advantages, positions us well for the rest of 2017 and the
industry recovery we expect to begin in 2018."
_________________________________________________________________________
(1) |
|
See reconciliations of adjusted net earnings and adjusted net
earnings per diluted share to the most directly comparable GAAP
measures in the tables accompanying this release.
|
|
|
(2) | |
EBITDA is defined as net earnings attributable to common
stockholders plus interest expense (income)-net, income taxes, and
depreciation and amortization. See reconciliations of EBITDA and
adjusted EBITDA to the most directly comparable GAAP measures in the
tables accompanying this release.
|
Manufacturing Operations
CF Industries' manufacturing network operated efficiently and continued
its focus on safety during the first quarter of 2017. As of March 31,
2017, CF Industries' 12-month rolling average recordable incident rate
was 1.13 incidents per 200,000 work hours, well below industry averages.
First quarter production levels were the highest in the history of the
company. Gross ammonia production during the first quarter of 2017 was
2.5 million tons, 25 percent higher than in the first quarter of 2016.
Sales Overview
Sales volumes for the quarter were significantly higher compared to the
first quarter of 2016 as increased supply available for sale met strong
early season demand for ammonia and urea ammonium nitrate (UAN) in the
Southern Plains and lower Midwest. Additionally, exports of ammonia and
UAN were significantly higher year-over-year as the company continues to
leverage its North American platform and develop a global portfolio of
customers in order to optimize the overall business.
Net sales in the first quarter of 2017 increased to $1,037 million from
$1,004 million in the same period last year as record sales volumes were
partially offset by lower average selling prices across all segments.
Average selling prices in the first quarter of 2017 were lower than
average selling prices in the first quarter of 2016 due to greater
global nitrogen supply availability. The average selling price for
ammonia was $307 per ton in the first quarter of 2017 compared to $362
per ton in the first quarter of 2016. The average selling price for urea
was $248 per ton in the first quarter of 2017 compared to $256 per ton
in the first quarter of 2016, and the average selling price for UAN was
$171 per ton in the first quarter of 2017 compared to $213 per ton in
the first quarter of 2016.
Cost of sales increased in the first quarter of 2017 compared to the
first quarter of 2016 due to the impact of higher realized gas costs,
sales volumes and increased depreciation and amortization.
In the first quarter of 2017, the average cost of natural gas reflected
in cost of sales for the company was $3.65 per MMBtu, which includes a
realized gain of $0.01 per MMBtu on natural gas hedges totaling $1
million. This compares to the average cost of natural gas in cost of
sales of $3.31 per MMBtu for the first quarter of 2016, which included a
realized loss of $0.80 per MMBtu on natural gas hedges totaling $56
million. During the first quarter of 2017, the average price of natural
gas at Henry Hub in North America was $3.00 per MMBtu, and the average
price of natural gas at the National Balancing Point in the United
Kingdom was $5.98 per MMBtu.
Additionally, the company recorded an unrealized net mark-to-market loss
on natural gas derivatives of $53 million in the first quarter of 2017
compared to an unrealized net mark-to-market loss on natural gas
derivatives of $21 million in the first quarter of 2016. The company did
not enter into any additional natural gas hedges in the first quarter of
2017.
Outlook
CF believes nitrogen demand remains strong during the spring application
season for nitrogen-consuming crops, including the approximately 90
million acres of corn expected to be planted in the United States. Wet
and cold weather in the Midwest that lasted from March into late April
stopped field work and delayed ammonia applications there, with activity
having accelerated more recently. Additionally, upgraded products such
as urea and UAN will be required to make up for ammonia not applied
during the fall or early spring application seasons.
The global nitrogen supply surplus continues to pressure marginal
producers in China and other regions. Chinese urea production costs are
estimated to be $15-$20 per metric ton higher than the middle of 2016
due primarily to higher anthracite coal prices. Published operating
rates in China during the first quarter averaged 57 percent, and there
have been significantly lower Chinese urea exports so far this year.
Urea exports from China during the first quarter were approximately 1.2
million metric tons, the lowest quarterly volume since the second
quarter of 2013. CF continues to expect 5-6 million metric tons of total
urea exports from China in 2017, a decline of up to 44 percent compared
to 2016 and up to 64 percent compared to 2015.
Even with significantly reduced Chinese urea exports, global trade flows
are unsettled as nitrogen producers attempt to find new outlets for
their production. India's absence from the global urea market through
March created additional challenges for producers who might otherwise
have sent product to that country. As nitrogen prices in North America
rose through the fourth quarter of 2016 into the first quarter of 2017,
the region became a target for exporters with a lack of options
elsewhere. The substantial volumes sent to the region, coupled with
higher North American production and changing buyer behavior, drove
prices down significantly as the quarter progressed. Prices subsequently
fell even lower as market participants liquidated positions.
CF anticipates this uneven pricing environment to continue through 2017,
with a spring increase possible before prices return to seasonally low
levels during the summer.
Capital Expenditures
New capital expenditures for 2017 are estimated to be in the range of
approximately $400 to $450 million for sustaining and other.
Additionally, as of December 31, 2016, and as of March 31, 2017, the
company had approximately $183 million in costs accrued but yet unpaid
for work completed in 2016 related to the capacity expansion projects.
Most of this unpaid amount is the subject of disputes between the
company and certain contractors and vendors. Actual cash expenditures
for 2017 will reflect any payments for these capacity expansion project
amounts if or when they are made.
Liquidity
As of March 31, 2017, the company had cash and cash equivalents of $1.31
billion on the balance sheet, had no borrowings outstanding under its
$750 million revolving credit facility and was in compliance with all
applicable covenant requirements under its debt instruments.
The company expects to receive tax refunds of approximately $800 million
due to the carryback of certain federal and state tax losses from the
2016 tax year to prior periods. These tax losses are primarily related
to accelerated tax depreciation of the capacity expansion projects that
were placed in service in 2016. The cash refunds related to this tax
loss carryback are expected to be received in the third quarter of 2017.
CHS Inc. Distribution
CHS Inc. (CHS) is entitled to semi-annual distributions resulting from
its minority equity investment in CF Industries Nitrogen, LLC (CFN). The
estimate of the partnership distribution earned by CHS, but not yet
declared, for the first quarter of 2017 is approximately $35 million.
Consolidated Results
|
| Three months ended |
| | March 31, |
| | 2017 |
| 2016 |
| | (dollars in millions, except |
| | per share |
| | and per MMBtu amounts) |
|
Net sales
| |
$
|
1,037
| | |
$
|
1,004
| |
|
Cost of sales
| |
931
|
| |
787
|
|
|
Gross margin
| |
$
|
106
|
| |
$
|
217
|
|
| | | |
|
|
Gross margin percentage
| |
10.2
|
%
| |
21.6
|
%
|
| | | |
|
|
Net (loss) earnings attributable to common stockholders
| |
$
|
(23
|
)
| |
$
|
26
| |
|
Adjusted net earnings (1) | |
$
|
11
| | |
$
|
100
| |
| | | |
|
|
Net (loss) earnings per diluted share
| |
$
|
(0.10
|
)
| |
$
|
0.11
| |
|
Adjusted net earnings per diluted share(1) | |
$
|
0.05
| | |
$
|
0.43
| |
| | | |
|
|
EBITDA(1) | |
$
|
218
| | |
$
|
207
| |
|
Adjusted EBITDA(1) | |
$
|
272
| | |
$
|
300
| |
| | | |
|
|
Tons of product sold (000s)
| |
4,745
| | |
4,051
| |
| | | |
|
|
Supplemental data (per MMBtu):
| | | | |
|
Natural gas costs in cost of sales(2) | |
$
|
3.66
| | |
$
|
2.51
| |
|
Realized derivatives (gain) loss in cost of sales(3) | |
(0.01
|
)
| |
0.80
|
|
|
Cost of natural gas in cost of sales
| |
$
|
3.65
| | |
$
|
3.31
| |
| | | |
|
|
Average daily market price of natural gas (per MMBtu):
| | | | |
| Henry Hub | |
$
|
3.00
| | |
$
|
1.98
| |
|
National Balancing Point UK | |
$
|
5.98
| | |
$
|
4.36
| |
| | | |
|
|
Unrealized net mark-to-market loss on natural gas derivatives
| |
$
|
53
| | |
$
|
21
| |
| | | |
|
|
Depreciation and amortization
| |
$
|
205
| | |
$
|
146
| |
|
Capital expenditures
| |
$
|
94
| | |
$
|
676
| |
| | | |
|
|
Production volume by product tons (000s):
| | | | |
|
Ammonia(4) | |
2,508
| | |
2,003
| |
|
Granular urea
| |
1,002
| | |
819
| |
|
UAN (32%)
| |
1,817
| | |
1,518
| |
|
AN
| |
542
| | |
431
| |
_______________________________________________________________________________
|
| (1) |
|
See reconciliations of EBITDA, adjusted EBITDA, adjusted net
earnings and adjusted net earnings per diluted share to the most
directly comparable GAAP measures in the tables accompanying this
release.
|
| (2) | |
Includes the cost of natural gas that is included in cost of sales
during the period under the first-in, first-out inventory cost
method.
|
| (3) | |
Includes realized gains and losses on natural gas derivatives
settled during the period. Excludes unrealized mark-to-market gains
and losses on natural gas derivatives.
|
| (4) | |
Gross ammonia production including amounts subsequently upgraded
into other products.
|
During the three months ended March 31, 2017 and 2016, certain
significant items impacted our financial results. The following table
outlines these significant items and how they impacted the comparability
of our financial results during these periods. During the three months
ended March 31, 2017 and 2016, we reported net (loss) earnings
attributable to common stockholders of $(23) million and $26 million,
respectively.
|
| Three months ended |
| | March 31, |
| | 2017 |
| 2016 |
| | Pre-Tax |
| After-Tax | | Pre-Tax |
| After-Tax |
| | (in millions) |
|
Depreciation and amortization(1) | |
$
|
205
|
|
$
|
128
| |
$
|
146
|
|
$
|
91
|
|
Unrealized net mark-to-market loss on natural gas derivatives(2) | |
53
| |
33
| |
21
| |
13
|
|
Transaction costs(3) | |
—
| |
—
| |
14
| |
9
|
|
Loss on foreign currency transactions including intercompany loans(4) | |
—
| |
—
| |
45
| |
44
|
|
Capacity expansion project expenses(4) | |
—
| |
—
| |
16
| |
10
|
| Strategic Venture with CHS: | | | | | | | | |
|
Noncontrolling interest(5) | |
8
| |
8
| |
17
| |
17
|
|
Loss on embedded derivative liability(4) | |
1
|
|
1
| |
—
|
|
—
|
| Total Impact of Significant Items | |
$
|
267
|
|
$
|
170
| |
$
|
259
|
|
$
|
184
|
_______________________________________________________________________________
(1) |
|
Included in cost of sales and selling, general and administrative
expenses in our consolidated statements of operations.
|
(2) | |
Included in cost of sales in our consolidated statements of
operations.
|
(3) | |
Transaction costs relate to costs of various consulting and legal
services associated with the company's proposed combination with
certain businesses of OCI and the company's strategic venture with
CHS.
|
(4) | |
Included in other operating-net in our consolidated statements of
operations.
|
(5) | |
Included in net earnings attributable to noncontrolling interests in
our consolidated statements of operations.
|
Segment Results
Ammonia Segment
CF Industries’ ammonia segment produces anhydrous ammonia (ammonia),
which is the company’s most concentrated nitrogen fertilizer, containing
82 percent nitrogen. The results of the ammonia segment consist of sales
of ammonia to external customers. In addition, ammonia is the “basic”
nitrogen product that the company upgrades into other nitrogen
fertilizers such as urea, UAN and AN.
|
| Three months ended |
| | March 31, |
| | 2017 |
| 2016 |
| | (dollars in millions, |
| | except per ton amounts) |
|
Net sales
| |
$
|
282
| | |
$
|
267
| |
|
Cost of sales
| |
265
|
| |
204
|
|
|
Gross margin
| |
$
|
17
|
| |
$
|
63
|
|
| | | |
|
|
Gross margin percentage
| |
6.0
|
%
| |
23.6
|
%
|
| | | |
|
|
Sales volume by product tons (000s)
| |
920
| | |
737
| |
|
Sales volume by nutrient tons (000s)(1) | |
754
| | |
605
| |
| | | |
|
|
Average selling price per product ton
| |
$
|
307
| | |
$
|
362
| |
|
Average selling price per nutrient ton(1) | |
374
| | |
441
| |
| | | |
|
|
Gross margin per product ton
| |
$
|
18
| | |
$
|
85
| |
|
Gross margin per nutrient ton(1) | |
23
| | |
104
| |
| | | |
|
|
Adjusted gross margin(2):
| | | | |
|
Gross margin
| |
$
|
17
| | |
$
|
63
| |
|
Depreciation and amortization
| |
44
| | |
21
| |
|
Unrealized net mark-to-market loss on natural gas derivatives
| |
17
|
| |
7
|
|
|
Adjusted gross margin
| |
$
|
78
|
| |
$
|
91
|
|
|
Adjusted gross margin as a percent of net sales
| |
27.7
|
%
| |
34.1
|
%
|
_______________________________________________________________________________
(1) |
|
Nutrient tons represent the tons of nitrogen within the product tons.
|
(2) | |
Adjusted gross margin and adjusted gross margin as a percent of net
sales are non-GAAP financial measures. Adjusted gross margin is
defined as gross margin excluding depreciation and amortization and
unrealized net mark-to-market (gain) loss on natural gas
derivatives. The company has presented adjusted gross margin and
adjusted gross margin as a percent of net sales because management
uses these measures, and believes they are useful to investors, as
supplemental financial measures in the comparison of year-over-year
performance. A reconciliation of adjusted gross margin and adjusted
gross margin as a percent of net sales to gross margin, the most
directly comparable GAAP measure, is provided in the table above.
See "Note Regarding Non-GAAP Financial Measures" in this release.
|
Comparison of 2017 to 2016 first quarter periods:
-
Ammonia sales volume increased for the first quarter of 2017 compared
to the first quarter of 2016 as additional volume available for sale
from the new ammonia capacity at the company's Donaldsonville and Port
Neal Nitrogen Complexes and an increase in ammonia production at the
company's Verdigris Nitrogen Complex, which was reduced in the first
quarter of 2016 due to an unplanned outage, met strong early demand in
the Southern Plains and lower Midwest. Sales volume also rose due to a
significant increase in export sales.
-
Ammonia average selling prices decreased primarily due to greater
global nitrogen supply availability. Additionally, the company's
ammonia sales during the quarter included a higher proportion of
lower-priced industrial and export sales compared to the prior year.
-
Ammonia gross margin per ton decreased in the first quarter of 2017
compared to the first quarter of 2016 due to lower average selling
prices, a $23 million increase in depreciation primarily related to
the new Donaldsonville and Port Neal ammonia plants, a $10 million
increase in the unrealized net mark-to-market loss on natural gas
derivatives and an increase in physical natural gas costs. These were
partially offset by the favorable settlement of natural gas
derivatives compared to the prior year and overhead efficiencies due
to higher operating rates and volume.
Granular Urea Segment
CF Industries’ granular urea segment produces granular urea, which
contains 46 percent nitrogen. Produced from ammonia and carbon dioxide,
it has the highest nitrogen content of any of the company’s solid
nitrogen fertilizers.
|
| Three months ended |
| | March 31, |
| | 2017 |
| 2016 |
| | (dollars in millions, |
| | except per ton amounts) |
|
Net sales
| |
$
|
238
| | |
$
|
235
| |
|
Cost of sales
| |
213
|
| |
175
|
|
|
Gross margin
| |
$
|
25
|
| |
$
|
60
|
|
| | | |
|
|
Gross margin percentage
| |
10.5
|
%
| |
25.5
|
%
|
| | | |
|
|
Sales volume by product tons (000s)
| |
958
| | |
919
| |
|
Sales volume by nutrient tons (000s)(1) | |
441
| | |
423
| |
| | | |
|
|
Average selling price per product ton
| |
$
|
248
| | |
$
|
256
| |
|
Average selling price per nutrient ton(1) | |
540
| | |
556
| |
| | | |
|
|
Gross margin per product ton
| |
$
|
26
| | |
$
|
65
| |
|
Gross margin per nutrient ton(1) | |
57
| | |
142
| |
| | | |
|
|
Adjusted gross margin(2):
| | | | |
|
Gross margin
| |
$
|
25
| | |
$
|
60
| |
|
Depreciation and amortization
| |
53
| | |
25
| |
|
Unrealized net mark-to-market loss on natural gas derivatives
| |
14
|
| |
6
|
|
|
Adjusted gross margin
| |
$
|
92
|
| |
$
|
91
|
|
|
Adjusted gross margin as a percent of net sales
| |
38.7
|
%
| |
38.7
|
%
|
_______________________________________________________________________________
(1) |
|
Nutrient tons represent the tons of nitrogen within the product tons.
|
(2) | |
Adjusted gross margin and adjusted gross margin as a percent of net
sales are non-GAAP financial measures. Adjusted gross margin is
defined as gross margin excluding depreciation and amortization and
unrealized net mark-to-market (gain) loss on natural gas
derivatives. The company has presented adjusted gross margin and
adjusted gross margin as a percent of net sales because management
uses these measures, and believes they are useful to investors, as
supplemental financial measures in the comparison of year-over-year
performance. A reconciliation of adjusted gross margin and adjusted
gross margin as a percent of net sales to gross margin, the most
directly comparable GAAP measure, is provided in the table above.
See "Note Regarding Non-GAAP Financial Measures" in this release.
|
Comparison of 2017 to 2016 first quarter periods:
-
Granular urea sales volume increased for the quarter primarily due to
additional volume available for sale from the new urea capacity at the
company's Port Neal Nitrogen Complex.
-
Granular urea average selling price per ton decreased due to greater
global nitrogen supply availability.
-
Granular urea gross margin per ton decreased due to lower average
selling prices, a $28 million increase in depreciation and
amortization primarily associated with the new Port Neal urea plant,
an $8 million increase in the unrealized net mark-to-market loss on
natural gas derivatives and an increase in physical natural gas costs.
These were partially offset by the favorable settlement of natural gas
derivatives compared to the prior year and overhead efficiencies due
to higher production rates.
UAN Segment
CF Industries’ UAN segment produces urea ammonium nitrate solution
(UAN). UAN is a liquid fertilizer product with nitrogen content that
typically ranges from 28 percent to 32 percent and is produced by
combining urea and ammonium nitrate in solution.
|
| Three months ended |
| | March 31, |
| | 2017 |
| 2016 |
| | (dollars in millions, |
| | except per ton amounts) |
|
Net sales
| |
$
|
317
| | |
$
|
309
| |
|
Cost of sales
| |
282
|
| |
231
|
|
|
Gross margin
| |
$
|
35
|
| |
$
|
78
|
|
| | | |
|
|
Gross margin percentage
| |
11.0
|
%
| |
25.2
|
%
|
| | | |
|
|
Sales volume by product tons (000s)
| |
1,849
| | |
1,452
| |
|
Sales volume by nutrient tons (000s)(1) | |
584
| | |
457
| |
| | | |
|
|
Average selling price per product ton
| |
$
|
171
| | |
$
|
213
| |
|
Average selling price per nutrient ton(1) | |
543
| | |
676
| |
| | | |
|
|
Gross margin per product ton
| |
$
|
19
| | |
$
|
54
| |
|
Gross margin per nutrient ton(1) | |
60
| | |
171
| |
| | | |
|
|
Adjusted gross margin(2):
| | | | |
|
Gross margin
| |
$
|
35
| | |
$
|
78
| |
|
Depreciation and amortization
| |
65
| | |
58
| |
|
Unrealized net mark-to-market loss on natural gas derivatives
| |
16
|
| |
6
|
|
|
Adjusted gross margin
| |
$
|
116
|
| |
$
|
142
|
|
|
Adjusted gross margin as a percent of net sales
| |
36.6
|
%
| |
46.0
|
%
|
_______________________________________________________________________________
(1) |
|
Nutrient tons represent the tons of nitrogen within the product tons.
|
(2) | |
Adjusted gross margin and adjusted gross margin as a percent of net
sales are non-GAAP financial measures. Adjusted gross margin is
defined as gross margin excluding depreciation and amortization and
unrealized net mark-to-market (gain) loss on natural gas
derivatives. The company has presented adjusted gross margin and
adjusted gross margin as a percent of net sales because management
uses these measures, and believes they are useful to investors, as
supplemental financial measures in the comparison of year-over-year
performance. A reconciliation of adjusted gross margin and adjusted
gross margin as a percent of net sales to gross margin, the most
directly comparable GAAP measure, is provided in the table above.
See "Note Regarding Non-GAAP Financial Measures" in this release.
|
Comparison of 2017 to 2016 first quarter periods:
-
UAN sales volume increased in the first quarter of 2017 as additional
volume available for sale from the new UAN capacity at the
Donaldsonville Nitrogen Complex, higher inventory levels entering 2017
compared to the prior year and an increase in UAN production at the
Verdigris Nitrogen Complex, which was reduced in the first quarter of
2016 due to an unplanned outage, met strong early demand in the
Southern Plains. The company also exported a significant amount of UAN
during the quarter.
-
UAN average selling price per ton decreased due to greater global
nitrogen supply availability. Additionally, the company's UAN sales
during the quarter included a higher proportion of lower-priced export
sales compared to the prior year.
-
UAN gross margin per ton decreased in the first quarter of 2017
compared to the first quarter of 2016 due to lower average selling
prices, a $7 million increase in depreciation and amortization
primarily associated with the new Donaldsonville UAN plant, a $10
million increase in the unrealized net mark-to-market loss on natural
gas derivatives and an increase in physical natural gas costs. These
were partially offset by the favorable settlement of natural gas
derivatives compared to the prior year and overhead efficiencies due
to higher production rates.
AN Segment
CF Industries' AN segment produces ammonium nitrate (AN). AN is used as
a nitrogen fertilizer with nitrogen content between 29 percent to 35
percent, and also is used by industrial customers for commercial
explosives and blasting systems. AN is produced at the company's Yazoo
City, Mississippi; Billingham, United Kingdom; and Ince, United Kingdom,
complexes.
|
| Three months ended |
| | March 31, |
| | 2017 |
| 2016 |
| | (dollars in millions, |
| | except per ton amounts) |
|
Net sales
| |
$
|
125
| | |
$
|
125
| |
|
Cost of sales
| |
106
|
| |
112
|
|
|
Gross margin
| |
$
|
19
|
| |
$
|
13
|
|
| | | |
|
|
Gross margin percentage
| |
15.2
|
%
| |
10.4
|
%
|
| | | |
|
|
Sales volume by product tons (000s)
| |
568
| | |
558
| |
|
Sales volume by nutrient tons (000s)(1) | |
191
| | |
188
| |
| | | |
|
|
Average selling price per product ton
| |
$
|
220
| | |
$
|
224
| |
|
Average selling price per nutrient ton(1) | |
654
| | |
665
| |
| | | |
|
|
Gross margin per product ton
| |
$
|
33
| | |
$
|
23
| |
|
Gross margin per nutrient ton(1) | |
99
| | |
69
| |
| | | |
|
|
Adjusted gross margin(2):
| | | | |
|
Gross margin
| |
$
|
19
| | |
$
|
13
| |
|
Depreciation and amortization
| |
19
| | |
22
| |
|
Unrealized net mark-to-market loss on natural gas derivatives
| |
2
|
| |
1
|
|
|
Adjusted gross margin
| |
$
|
40
|
| |
$
|
36
|
|
|
Adjusted gross margin as a percent of net sales
| |
32.0
|
%
| |
28.8
|
%
|
_______________________________________________________________________________
(1) |
|
Nutrient tons represent the tons of nitrogen within the product tons.
|
(2) | |
Adjusted gross margin and adjusted gross margin as a percent of net
sales are non-GAAP financial measures. Adjusted gross margin is
defined as gross margin excluding depreciation and amortization and
unrealized net mark-to-market (gain) loss on natural gas
derivatives. The company has presented adjusted gross margin and
adjusted gross margin as a percent of net sales because management
uses these measures, and believes they are useful to investors, as
supplemental financial measures in the comparison of year-over-year
performance. A reconciliation of adjusted gross margin and adjusted
gross margin as a percent of net sales to gross margin, the most
directly comparable GAAP measure, is provided in the table above.
See "Note Regarding Non-GAAP Financial Measures" in this release.
|
Comparison of 2017 to 2016 first quarter periods:
-
AN sales volume was higher in the first quarter of 2017 compared to
the first quarter of 2016 due to the commencement of a long-term
ammonium nitrate supply agreement.
-
AN average selling price per ton was nearly flat in the first quarter
of 2017 as compared to the first quarter of 2016 as higher selling
prices were offset by the impact of foreign currency translation due
to the weakening British pound.
-
AN gross margin per ton increased as lower freight costs, depreciation
and other manufacturing costs were partially offset by higher natural
gas costs and mark-to-market losses on natural gas derivatives.
Other Segment
CF Industries’ Other segment includes diesel exhaust fluid (DEF), urea
liquor, nitric acid and compound fertilizer products (NPKs).
|
| Three months ended |
| | March 31, |
| | 2017 |
| 2016 |
| | (dollars in millions, |
| | except per ton amounts) |
|
Net sales
| |
$
|
75
| | |
$
|
68
| |
|
Cost of sales
| |
65
|
| |
65
|
|
|
Gross margin
| |
$
|
10
|
| |
$
|
3
|
|
| | | |
|
|
Gross margin percentage
| |
13.3
|
%
| |
4.4
|
%
|
| | | |
|
|
Sales volume by product tons (000s)
| |
450
| | |
385
| |
|
Sales volume by nutrient tons (000s)(1) | |
88
| | |
73
| |
| | | |
|
|
Average selling price per product ton
| |
$
|
167
| | |
$
|
177
| |
|
Average selling price per nutrient ton(1) | |
852
| | |
932
| |
| | | |
|
|
Gross margin per product ton
| |
$
|
22
| | |
$
|
8
| |
|
Gross margin per nutrient ton(1) | |
114
| | |
41
| |
| | | |
|
|
Adjusted gross margin(2):
| | | | |
|
Gross margin
| |
$
|
10
| | |
$
|
3
| |
|
Depreciation and amortization
| |
12
| | |
10
| |
|
Unrealized net mark-to-market loss on natural gas derivatives
| |
4
|
| |
1
|
|
|
Adjusted gross margin
| |
$
|
26
|
| |
$
|
14
|
|
|
Adjusted gross margin as a percent of net sales
| |
34.7
|
%
| |
20.6
|
%
|
_______________________________________________________________________________
(1) |
|
Nutrient tons represent the tons of nitrogen within the product tons.
|
(2) | |
Adjusted gross margin and adjusted gross margin as a percent of net
sales are non-GAAP financial measures. Adjusted gross margin is
defined as gross margin excluding depreciation and amortization and
unrealized net mark-to-market (gain) loss on natural gas
derivatives. The company has presented adjusted gross margin and
adjusted gross margin as a percent of net sales because management
uses these measures, and believes they are useful to investors, as
supplemental financial measures in the comparison of year-over-year
performance. A reconciliation of adjusted gross margin and adjusted
gross margin as a percent of net sales to gross margin, the most
directly comparable GAAP measure, is provided in the table above.
See "Note Regarding Non-GAAP Financial Measures" in this release.
|
Comparison of 2017 to 2016 first quarter periods:
-
Other segment volume was higher due primarily to higher year-over-year
sales of DEF as the company continues to grow its North American DEF
business.
-
Other segment average selling price per ton decreased due to greater
global nitrogen supply availability.
-
Other segment gross margin per ton increased due to higher sales
volume in the first quarter of 2017 compared to the first quarter of
2016 and greater percentage of high-margin DEF sales within that
volume partially offset by lower average sales prices, a $2 million
increase in depreciation and amortization and a $3 million increase in
the unrealized net mark-to-market loss on natural gas derivatives.
Dividend Payment
On April 27, 2017, CF Industries’ Board of Directors declared a
quarterly dividend of $0.30 per common share. The dividend will be paid
on May 31, 2017 to stockholders of record as of May 15, 2017.
Conference Call
CF Industries will hold a conference call to discuss its first quarter
2017 results at 9:00 a.m. ET on Thursday, May 4, 2017. This conference
call will include discussion of CF Industries' business environment and
outlook. Investors can access the call and find dial-in information on
the Investor Relations section of the company’s website at www.cfindustries.com.
About CF Industries Holdings, Inc.
CF Industries Holdings, Inc., headquartered in Deerfield, Illinois,
through its subsidiaries is a global leader in the manufacturing and
distribution of nitrogen products, serving both agricultural and
industrial customers. CF Industries operates world-class nitrogen
manufacturing complexes in Canada, the United Kingdom and the United
States, and distributes plant nutrients through a system of terminals,
warehouses, and associated transportation equipment located primarily in
the Midwestern United States. The company also owns a 50 percent
interest in an ammonia facility in The Republic of Trinidad and Tobago.
CF Industries routinely posts investor announcements and additional
information on the company’s website at www.cfindustries.com and
encourages those interested in the company to check there frequently.
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, EBITDA per ton, EBITDA as a percent of net sales, adjusted
EBITDA, adjusted EBITDA per ton, adjusted EBITDA as a percent of net
sales, adjusted net earnings, and adjusted net earnings per diluted
share, and, on a segment basis, adjusted gross margin and adjusted gross
margin as a percent of net sales, which are non-GAAP financial measures,
provide additional meaningful information regarding the company's
performance and financial strength. Non-GAAP financial measures should
be viewed in addition to, and not as an alternative for, the company's
reported results prepared in accordance with GAAP. In addition, because
not all companies use identical calculations, EBITDA, EBITDA per ton,
EBITDA as a percent of net sales, adjusted EBITDA, adjusted EBITDA per
ton, adjusted EBITDA as a percent of net sales, adjusted net earnings,
adjusted net earnings per diluted share, adjusted gross margin and
adjusted gross margin as a percent of net sales, included in this
release may not be comparable to similarly titled measures of other
companies. Reconciliations of EBITDA, EBITDA per ton, EBITDA as a
percent of net sales, adjusted EBITDA, adjusted EBITDA per ton, adjusted
EBITDA as a percent of net sales, adjusted net earnings, and adjusted
net earnings per diluted share to the most directly comparable GAAP
measures are provided in the tables accompanying this release under “CF
Industries Holdings, Inc.-Selected Financial Information-Non-GAAP
Disclosure Items.” Reconciliations of adjusted gross margin and adjusted
gross margin as a percent of net sales to the most directly comparable
GAAP measures are provided in the segment tables included in this
release.
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 as “anticipate,” “believe,” “could,” “estimate,” “expect,”
“intend,” “may,” “plan,” “predict,” “project,” “will” or “would” and
similar terms and phrases, including references to assumptions.
Forward-looking statements are not guarantees of future performance and
are subject to a number of assumptions, risks and uncertainties, many of
which are beyond the Company’s control, which could cause actual results
to differ materially from such statements. These statements may include,
but are not limited to, statements about strategic plans and statements
about future financial and operating results.
Important factors that could cause actual results to differ materially
from those in the forward-looking statements include, among others, the
cyclical nature of the Company’s business and the agricultural sector;
the global commodity nature of the Company’s fertilizer products, the
impact of global supply and demand on the Company’s selling prices, and
the intense global competition from other fertilizer producers;
conditions in the U.S. and European agricultural industry; the
volatility of natural gas prices in North America and Europe;
difficulties in securing the supply and delivery of raw materials,
increases in their costs or delays or interruptions in their delivery;
reliance on third party providers of transportation services and
equipment; the significant risks and hazards involved in producing and
handling the Company’s products against which the Company may not be
fully insured; the Company’s ability to manage its indebtedness;
operating and financial restrictions imposed on the Company by the
agreements governing the Company's senior secured indebtedness; risks
associated with the Company’s incurrence of additional indebtedness; the
Company's ability to maintain compliance with covenants under the
agreements governing its indebtedness; downgrades of the Company’s
credit ratings; risks associated with cyber security; weather
conditions; risks associated with the Company’s ability to utilize its
tax net operating losses and other tax assets, including the risk that
the use of such tax benefits is limited by an “ownership change” (as
defined under the Internal Revenue Code and related Internal Revenue
Service pronouncements); risks associated with changes in tax laws and
disagreements with taxing authorities; risks associated with expansions
of the Company’s business, including unanticipated adverse consequences
and the significant resources that could be required; potential
liabilities and expenditures related to environmental, health and safety
laws and regulations and permitting requirements; future regulatory
restrictions and requirements related to greenhouse gas emissions; the
seasonality of the fertilizer business; the impact of changing market
conditions on the Company’s forward sales programs; risks involving
derivatives and the effectiveness of the Company’s risk measurement and
hedging activities; the Company’s reliance on a limited number of key
facilities; risks associated with the operation or management of the
strategic venture with CHS Inc. (the "CHS Strategic Venture"), risks and
uncertainties relating to the market prices of the fertilizer products
that are the subject of the supply agreement with CHS Inc. over the life
of the supply agreement, and the risk that any challenges related to the
CHS Strategic Venture will harm the Company's other business
relationships; risks associated with the Company’s Point Lisas Nitrogen
Limited joint venture; acts of terrorism and regulations to combat
terrorism; risks associated with international operations; and
deterioration of global market and economic conditions.
More detailed information about factors that may affect the Company’s
performance and could cause actual results to differ materially from
those in any forward-looking statements may be found in CF Industries
Holdings, Inc.’s filings with the Securities and Exchange Commission,
including CF Industries Holdings, Inc.’s most recent annual and
quarterly reports on Form 10-K and Form 10-Q, which are available in the
Investor Relations section of the Company’s web site. Forward-looking
statements are given only as of the date of this communication and the
Company disclaims any obligation to update or revise the forward-looking
statements, whether as a result of new information, future events or
otherwise, except as required by law.
| CF INDUSTRIES HOLDINGS, INC. |
| SELECTED FINANCIAL INFORMATION |
| CONSOLIDATED STATEMENTS OF OPERATIONS |
| (unaudited) |
|
| |
| | Three months ended |
| | March 31, |
| | 2017 |
| 2016 |
| | (in millions, except per |
| | share amounts) |
|
Net sales
| |
$
|
1,037
| | |
$
|
1,004
| |
|
Cost of sales
| |
931
|
| |
787
|
|
|
Gross margin
| |
106
|
| |
217
|
|
|
Selling, general and administrative expenses
| |
46
| | |
45
| |
|
Transaction costs
| |
—
| | |
14
| |
|
Other operating—net
| |
6
|
| |
61
|
|
|
Total other operating costs and expenses
| |
52
| | |
120
| |
|
Equity in earnings of operating affiliates
| |
3
|
| |
—
|
|
|
Operating earnings
| |
57
| | |
97
| |
|
Interest expense
| |
80
| | |
38
| |
|
Interest income
| |
(1
|
)
| |
(1
|
)
|
|
Other non-operating—net
| |
—
|
| |
(2
|
)
|
|
(Loss) earnings before income taxes
| |
(22
|
)
| |
62
| |
|
Income tax (benefit) provision
| |
(13
|
)
| |
15
|
|
|
Net (loss) earnings
| |
(9
|
)
| |
47
| |
|
Less: Net earnings attributable to noncontrolling interests
| |
14
|
| |
21
|
|
|
Net (loss) earnings attributable to common stockholders
| |
$
|
(23
|
)
| |
$
|
26
|
|
| | | |
|
|
Net (loss) earnings per share attributable to common stockholders:
| | | | |
|
Basic
| |
$
|
(0.10
|
)
| |
$
|
0.11
|
|
|
Diluted
| |
$
|
(0.10
|
)
| |
$
|
0.11
|
|
|
Weighted-average common shares outstanding:
| | | | |
|
Basic
| |
233.1
|
| |
233.2
|
|
|
Diluted
| |
233.1
|
| |
233.5
|
|
| CF INDUSTRIES HOLDINGS, INC. |
| SELECTED FINANCIAL INFORMATION |
| CONDENSED CONSOLIDATED BALANCE SHEETS |
|
| |
| |
| | (unaudited) | | |
| | March 31, | | December 31, |
| | 2017 | | 2016 |
| | (in millions) |
| Assets | | | | |
|
Current assets:
| | | | |
|
Cash and cash equivalents
| |
$
|
1,312
| | |
$
|
1,164
|
|
Restricted cash
| |
4
| | |
5
|
|
Accounts receivable—net
| |
252
| | |
236
|
|
Inventories
| |
364
| | |
339
|
|
Prepaid income taxes
| |
844
| | |
841
|
|
Other current assets
| |
29
|
| |
70
|
|
Total current assets
| |
2,805
| | |
2,655
|
|
Property, plant and equipment—net
| |
9,552
| | |
9,652
|
|
Investments in affiliates
| |
141
| | |
139
|
| Goodwill | |
2,350
| | |
2,345
|
|
Other assets
| |
337
|
| |
340
|
| Total assets | |
$
|
15,185
|
| |
$
|
15,131
|
| | | |
|
| Liabilities and Equity | | | | |
|
Current liabilities:
| | | | |
|
Accounts payable and accrued expenses
| |
$
|
657
| | |
$
|
638
|
|
Income taxes payable
| |
—
| | |
1
|
|
Customer advances
| |
184
| | |
42
|
|
Other current liabilities
| |
12
|
| |
5
|
|
Total current liabilities
| |
853
|
| |
686
|
|
Long-term debt
| |
5,780
| | |
5,778
|
|
Deferred income taxes
| |
1,616
| | |
1,630
|
|
Other liabilities
| |
553
| | |
545
|
|
Equity:
| | | | |
|
Stockholders' equity
| |
3,279
| | |
3,348
|
|
Noncontrolling interests
| |
3,104
|
| |
3,144
|
|
Total equity
| |
6,383
|
| |
6,492
|
| Total liabilities and equity | |
$
|
15,185
|
| |
$
|
15,131
|
| CF INDUSTRIES HOLDINGS, INC. |
| SELECTED FINANCIAL INFORMATION |
| CONSOLIDATED STATEMENTS OF CASH FLOWS |
| (unaudited) |
|
| |
| | Three months ended |
| | March 31, |
| | 2017 |
| 2016 |
| | (in millions) |
| Operating Activities: | | | | |
|
Net (loss) earnings
| |
$
|
(9
|
)
| |
$
|
47
| |
|
Adjustments to reconcile net (loss) earnings to net cash provided by
operating activities:
| | | | |
|
Depreciation and amortization
| |
205
| | |
146
| |
|
Deferred income taxes
| |
(16
|
)
| |
36
| |
|
Stock-based compensation expense
| |
4
| | |
4
| |
|
Unrealized net loss on natural gas and foreign currency derivatives
| |
53
| | |
18
| |
|
Unrealized loss on embedded derivative
| |
1
| | |
—
| |
|
Loss on disposal of property, plant and equipment
| |
1
| | |
3
| |
|
Undistributed earnings of affiliates—net of taxes
| |
(5
|
)
| |
(4
|
)
|
|
Changes in:
| | | | |
|
Accounts receivable—net
| |
(9
|
)
| |
4
| |
|
Inventories
| |
(15
|
)
| |
16
| |
|
Accrued and prepaid income taxes
| |
(5
|
)
| |
(23
|
)
|
|
Accounts payable and accrued expenses
| |
5
| | |
(6
|
)
|
|
Customer advances
| |
142
| | |
65
| |
|
Other—net
| |
4
|
| |
40
|
|
|
Net cash provided by operating activities
| |
356
|
| |
346
|
|
| Investing Activities: | | | | |
|
Additions to property, plant and equipment
| |
(94
|
)
| |
(676
|
)
|
|
Proceeds from sale of property, plant and equipment
| |
8
| | |
2
| |
|
Withdrawals from restricted cash funds
| |
1
| | |
11
| |
|
Other—net
| |
—
|
| |
1
|
|
|
Net cash used in investing activities
| |
(85
|
)
| |
(662
|
)
|
| Financing Activities: | | | | |
|
Proceeds from short-term borrowings
| |
—
| | |
150
| |
|
Payments of short-term borrowings
| |
—
| | |
(150
|
)
|
|
Dividends paid on common stock
| |
(70
|
)
| |
(70
|
)
|
|
Issuance of noncontrolling interest in CFN
| |
—
| | |
2,800
| |
|
Distributions to noncontrolling interests
| |
(54
|
)
| |
(13
|
)
|
|
Net cash (used in) provided by financing activities
| |
(124
|
)
| |
2,717
|
|
|
Effect of exchange rate changes on cash and cash equivalents
| |
1
|
| |
2
|
|
|
Increase in cash and cash equivalents
| |
148
| | |
2,403
| |
|
Cash and cash equivalents at beginning of period
| |
1,164
|
| |
286
|
|
| Cash and cash equivalents at end of period | |
$
|
1,312
|
| |
$
|
2,689
|
|
CF INDUSTRIES HOLDINGS, INC.
SELECTED FINANCIAL
INFORMATION
NON-GAAP DISCLOSURE ITEMS
Reconciliation of net (loss) earnings, net (loss) earnings per ton
and net (loss) earnings as a percent of net sales (GAAP measures) to
EBITDA, EBITDA per ton, EBITDA as a percent of net sales, adjusted
EBITDA, adjusted EBITDA per ton and adjusted EBITDA as a percent of net
sales (non-GAAP measures), as applicable:
EBITDA is defined as net (loss) earnings attributable to common
stockholders plus interest expense (income)-net, income taxes, and
depreciation and amortization. Other adjustments include the elimination
of loan fee amortization that is included in both interest and
amortization, and the portion of depreciation that is included in
noncontrolling interests. The company has presented EBITDA, EBITDA per
ton and EBITDA as a percent of net sales because management uses these
measures to track performance and believes that they are frequently used
by securities analysts, investors and other interested parties in the
evaluation of companies in the industry. Adjusted EBITDA is defined as
EBITDA adjusted with the selected items included in EBITDA as summarized
in the table below. The company has presented adjusted EBITDA, adjusted
EBITDA per ton and adjusted EBITDA as a percent of net sales because
management uses these measures, and believes they are useful to
investors, as supplemental financial measures in the comparison of
year-over-year performance.
|
| Three months ended |
| | March 31, |
| | 2017 |
| 2016 |
| | (in millions) |
|
Net (loss) earnings attributable to common stockholders
| |
$
|
(23
|
)
| |
$
|
26
| |
|
Interest expense (income)—net
| |
79
| | |
37
| |
|
Income tax (benefit) provision
| |
(13
|
)
| |
15
| |
|
Depreciation and amortization
| |
205
| | |
146
| |
|
Less: other adjustments
| |
(30
|
)
| |
(17
|
)
|
|
EBITDA
| |
218
|
| |
207
|
|
|
Unrealized net mark-to-market loss on natural gas derivatives
| |
53
| | |
21
| |
|
Transaction costs(1) | |
—
| | |
14
| |
|
Loss on foreign currency transactions(2) | |
—
| | |
45
| |
|
Capacity expansion project expenses
| |
—
| | |
16
| |
|
Unrealized loss on embedded derivative(3) | |
1
| | |
—
| |
|
Gain on foreign currency derivatives
| |
—
|
| |
(3
|
)
|
|
Total adjustments
| |
54
|
| |
93
|
|
|
Adjusted EBITDA
| |
$
|
272
|
| |
$
|
300
|
|
| | | |
|
|
Net sales
| |
$
|
1,037
| | |
$
|
1,004
| |
|
Tons of product sold (000s)
| |
4,745
| | |
4,051
| |
| | | |
|
| Net (loss) earnings as a percent of net sales | | (2.2 | )% | | 2.6 | % |
| Net (loss) earnings per ton | | $ | (4.85 | ) | | $ | 6.42 | |
| EBITDA as a percent of net sales | | 21.0 | % | | 20.6 | % |
| EBITDA per ton | | $ | 45.94 | | | $ | 51.10 | |
| Adjusted EBITDA as a percent of net sales | | 26.2 | % | | 29.9 | % |
| Adjusted EBITDA per ton | | $ | 57.32 | | | $ | 74.06 | |
_______________________________________________________________________________
(1) |
|
Transaction costs relate to costs of various consulting and legal
services associated with the company's proposed combination with
certain businesses of OCI and the company's strategic venture with
CHS.
|
(2) | |
Loss on foreign currency transactions primarily relates to the
unrealized foreign currency exchange rate impact on intercompany
debt that has not been permanently invested.
|
(3) | |
Represents the change in fair value on the embedded derivative
included within the terms of the company's strategic venture with
CHS.
|
Reconciliation of net (loss) earnings attributable to common
stockholders and net (loss) earnings per diluted share attributable to
common stockholders (GAAP measures) to adjusted net earnings and
adjusted net earnings per diluted share (non-GAAP measures), as
applicable:
Adjusted net earnings is defined as net (loss) earnings attributable to
common stockholders adjusted with the impacts of the selected items
included in net (loss) earnings as summarized in the table below. The
company has presented adjusted net earnings and adjusted net earnings
per diluted share because management uses these measures, and believes
they are useful to investors, as supplemental financial measures in the
comparison of year-over-year performance.
|
| Three months ended |
| | March 31, |
| | 2017 |
| 2016 |
| | (in millions) |
|
Net (loss) earnings attributable to common stockholders
| |
$
|
(23
|
)
| |
$
|
26
| |
|
Unrealized net mark-to-market loss on natural gas derivatives
| |
53
| | |
21
| |
|
Transaction costs(1) | |
—
| | |
14
| |
|
Loss on foreign currency transactions(2) | |
—
| | |
45
| |
|
Capacity expansion project expenses
| |
—
| | |
16
| |
|
Unrealized loss on embedded derivative(3) | |
1
| | |
—
| |
|
Gain on foreign currency derivatives
| |
—
| | |
(3
|
)
|
|
Income tax adjustments(4) | |
(20
|
)
| |
(19
|
)
|
|
Total adjustments
| |
34
|
| |
74
|
|
|
Adjusted net earnings
| |
$
|
11
|
| |
$
|
100
|
|
| | | | | | | |
|
| |
|
| | Three months ended |
| | March 31, |
| | 2017 | | 2016 |
|
Net (loss) earnings per diluted share attributable to common
stockholders
| |
$
|
(0.10
|
)
| |
$
|
0.11
| |
|
Unrealized net mark-to-market loss on natural gas derivatives
| |
0.23
| | |
0.09
| |
|
Transaction costs(1) | |
—
| | |
0.06
| |
|
Loss on foreign currency transactions(2) | |
—
| | |
0.19
| |
|
Capacity expansion project expenses
| |
—
| | |
0.07
| |
|
Unrealized loss on embedded derivative(3) | |
0.01
| | |
—
| |
|
Gain on foreign currency derivatives
| |
—
| | |
(0.01
|
)
|
|
Income tax adjustments(4) | |
(0.09
|
)
| |
(0.08
|
)
|
|
Total adjustments
| |
0.15
|
| |
0.32
|
|
|
Adjusted net earnings per diluted share
| |
$
|
0.05
|
| |
$
|
0.43
|
|
_______________________________________________________________________________
(1) |
|
Transaction costs relate to costs of various consulting and legal
services associated with the company's proposed combination with
certain businesses of OCI and the company's strategic venture with
CHS.
|
(2) | |
Loss on foreign currency transactions primarily relates to the
unrealized foreign currency exchange rate impact on intercompany
debt that has not been permanently invested.
|
(3) | |
Represents the change in fair value on the embedded derivative
included within the terms of the company's strategic venture with
CHS.
|
(4) | |
Represents the adjustment to the GAAP basis tax provision reflecting
the tax impact of the other non-GAAP adjustments.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170503006623/en/
CF Industries Holdings, Inc.
Media
Chris Close
Director,
Corporate Communications
847-405-2542 - cclose@cfindustries.com
or
Investors
Martin
Jarosick
Vice President, Investor Relations
847-405-2045 - mjarosick@cfindustries.com
Source: CF Industries Holdings, Inc.