SELECTED HISTORICAL CONSOLIDATED FINANCIAL DATA OF IMC
IMC is providing the following financial information to assist you in your analysis of the financial aspects of the transactions. IMC derived its annual historical financial information from the audited consolidated
financial statements of IMC as of and for each of the years ended December 31, 1999 through 2003. The interim results set forth below as of and for the six months ended June 30, 2003 and 2004 are derived from IMC’s unaudited consolidated
financial statements. The unaudited consolidated financial statements include all adjustments, consisting only of normal accruals, which IMC considers necessary for a fair presentation of the financial position and results of operations for these
periods.
The following table summarizes selected historical
consolidated financial data of IMC. Please read this information in conjunction with IMC’s audited consolidated financial statements and notes thereto and the section entitled “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” which are part of IMC’s Annual Report on Form 10-K for the year ended December 31, 2003, which is incorporated into this document by reference, as well as other information that IMC has filed with the
SEC. The historical results included below and elsewhere in this document are not indicative of the future performance of IMC or Mosaic.
As of and for the
Six Months Ended
June 30,
As of and for the Year Ended December 31,
2004
2003 (a)
2003 (b)
2002
2001 (c)
2000 (d)
1999 (e)
(in millions, except per share data)
Statement of Operations Data:
Net sales
$
1,333.0
$
1,090.8
$
2,190.6
$
2,057.4
$
1,958.7
$
2,095.9
$
2,282.9
Cost of goods sold
1,125.9
1,010.9
2,009.4
1,794.4
1,769.8
1,767.2
1,843.5
Gross margin
207.1
79.9
181.2
263.0
188.9
328.7
439.4
Selling, general and administrative expenses
36.9
40.4
79.6
80.7
81.8
102.7
127.8
Gain on sale of operating assets
—
(16.5
)
(31.3
)
—
—
—
—
Goodwill write-down
—
—
—
—
—
—
432.0
Restructuring activity
—
3.7
6.5
—
11.0
(1.2
)
163.3
Operating earnings (loss)
170.2
52.3
126.4
182.3
96.1
227.2
(283.7
)
Interest expense
94.4
91.9
185.7
174.2
152.3
112.6
111.4
Foreign currency transaction (gain) loss
(16.3
)
50.7
66.7
(0.7
)
(4.3
)
(7.2
)
4.4
Gain on sale of securities
—
(35.5
)
(47.9
)
—
—
—
—
Debt refinancing (income) expense
—
2.9
28.1
0.9
21.7
—
(0.9
)
Other (income) expense, net
14.9
(2.4
)
1.6
8.1
19.5
3.1
(8.6
)
Earnings (loss) from continuing operations before minority interest
77.2
(55.3
)
(107.8
)
(0.2
)
(93.1
)
118.7
(390.0
)
Minority interest
(12.8
)
(22.7
)
(33.7
)
(16.2
)
(40.7
)
(12.4
)
(0.1
)
Earnings (loss) from continuing operations before income taxes
90.0
(32.6
)
(74.1
)
16.0
(52.4
)
131.1
(389.9
)
Provision (benefit) for income taxes
35.7
(23.0
)
(36.5
)
29.8
(10.4
)
46.8
141.7
Earnings (loss) from continuing operations
54.3
(9.6
)
(37.6
)
(13.8
)
(42.0
)
84.3
(531.6
)
Loss from discontinued operations
(2.4
)
(29.0
)
(92.9
)
(96.4
)
—
(429.3
)
(234.2
)
Cumulative effect of a change in accounting principle (f)
—
(4.9
)
(4.9
)
—
(24.5
)
—
(7.5
)
Net earnings (loss)
$
51.9
$
(43.5
)
$
(135.4
)
$
(110.2
)
$
(66.5
)
$
(345.0
)
$
(773.3
)
Diluted earnings (loss) per common share:
Earnings (loss) from continuing operations
$
0.41
$
(0.08
)
$
(0.37
)
$
(0.13
)
$
(0.36
)
$
0.73
$
(4.64
)
Loss from discontinued operations
(0.02
)
(0.25
)
(0.81
)
(0.84
)
—
(3.73
)
(2.04
)
Cumulative effect of a change in accounting principle (f)
—
(0.04
)
(0.04
)
—
(0.21
)
—
(0.07
)
Net earnings (loss) per share
$
0.39
$
(0.37
)
$
(1.22
)
$
(0.97
)
$
(0.57
)
$
(3.00
)
$
(6.75
)
Balance Sheet Data (at period end):
Cash and cash equivalents
$
48.0
$
184.7
$
76.8
$
17.7
$
248.7
$
84.5
$
80.8
Total assets
3,632.0
3,752.4
3,670.7
3,637.1
4,248.9
4,261.6
5,195.9
Total debt (including current maturities)
2,091.1
2,172.6
2,116.8
2,271.5
2,291.5
2,360.6
2,548.6
Total liabilities
3,088.6
3,161.6
3,144.1
3,245.4
3,698.9
3,586.2
4,115.8
Total stockholders’ equity
543.4
590.8
526.6
391.7
540.7
675.4
1080.1
Other Financial Data:
Dividends declared per common share
$
—
$
0.04
$
0.06
$
0.08
$
0.08
$
0.32
$
0.32
Depreciation, depletion and amortization from continuing operations
91.1
84.2
171.9
165.3
157.2
166.2
175.3
Capital expenditures
59.9
48.6
120.3
140.0
123.1
118.1
248.4
Book value per share (end of period)
4.69
5.13
4.59
3.42
4.72
5.88
9.43
Ratios of earnings to fixed charges and preferred stock dividends (g)
Operating results from continuing operations include charges of $3.7 million, $2.2 million after tax and minority interest, or $0.02 per share, as a result of an organizational
restructuring program.
(b)
Operating results from continuing operations include restructuring charges of $6.5 million, $4.1 million after tax and minority interest, or $0.03 per share, as well as gains on the
sale of assets of $79.2 million, $68.8 million after tax and minority interest, or $0.59 per share.
(c)
Operating results from continuing operations include special items of $17.4 million, $15.6 million after tax and minority interest, or $0.13 per share, primarily related to
increased accruals for environmental liabilities and prior year income taxes, the Reorganization Plan and a non-cash gain resulting from marking to market a common equity forward purchase contract (as described in IMC’s Annual Report on Form
10-K for the year ended December 31, 2003).
(d)
Operating results from continuing operations include a restructuring gain of $1.2 million, $0.6 million after tax and minority interest.
(e)
Operating results from continuing operations include special charges of $651.7 million, $677.7 million after tax and minority interest, or $5.91 per share, related to the
Rightsizing Program (as described in IMC’s Annual Report on Form 10-K for the year ended December 31, 2003), additional asset write-offs and environmental accruals, a goodwill write-down as well as a change in tax law.
(f)
On January 1, 2003, IMC adopted Statement of Financial Accounting Standards No. 143,
Accounting for Asset Retirement Obligations,
which required legal obligations associated
with the retirement of long-lived assets to be recognized at their fair value at the time that the obligations are incurred. On June 30, 2001, IMC adopted Emerging Issues Task Force No. 00-19,
Derivative Instruments Indexed to, and Potentially
Settled in, a Company’s Own Stock,
which required IMC to account for its common equity forward purchase contract as an asset or a liability, with changes in the value reflected in the consolidated statement of operations. On January 1,
1999, IMC adopted Statement of Position 98-5,
Reporting on the Costs of Start-Up Activities,
which mandated that costs related to start-up activities be expensed as incurred. At the time of adoption of each of these pronouncements, IMC
recognized a cumulative effect of a change in accounting principle.
(g)
Earnings consist of pre-tax earnings from continuing operations but before fixed charges. Fixed charges consist of interest on indebtedness, interest capitalized as part of fixed
assets, amortization of debt expense and rent expense which is deemed representative of an interest factor. IMC’s earnings were insufficient to cover fixed charges and preferred stock dividends by $55.3 million for the six months ended June 30,
2003 and $115.4 million, $93.1 million and $390.0 million for the years ended December 31, 2003, 2001 and 1999, respectively.
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