Madison, Miss. — Phosphate Holdings Inc. (PHI), the owner of Mississippi Phosphates Corp., reported net income of $857,000 ($0.10 per diluted and basic share) on sales of $78.5 million for the second quarter ending June 30, 2012, up from a year-ago loss of $1.76 million ($0.21 per share) on sales of $80.4 million. Operating income was also up, at $2 million from the year ago loss of $2.6 million. Sales were off 2.4 percent. Although the average sales price for DAP was down 11 percent, to $482.42/st from the year-ago $542.54/st, sales volumes were up at 161,045 st, which include exports of 106,364 st and 54,681 st going into the domestic market. Year-ago sales volumes were 146,213 st. PHI reported a six-month loss of $201,000 ($0.02 per share) on sales of $171.1 million, compared to a year-ago loss of $1.75 million ($0.21 per share) on sales of $158 million. As of June 30, 2012, PHI had a cash balance of approximately $1.2 million and borrowings under its credit agreement of $14.8 million. During the second quarter, it expended $1.9 million on capital expenditures. PHI said it continues to aggressively manage its liquidity internally in the absence of an external committed source of additional liquidity. Assuming no further substantial interruptions to normal operations, it believes the operating results should be adequate to meet PHI’s operating and capital needs during 2012 without the need for additional liquidity facilities or arrangements.
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