PHI reports 3Q loss; extends rock deal
Phosphate Holdings Inc., which owns Pascagoula phosphate producer Mississippi Phosphates Corp., reported a third quarter net loss of $4.8 million, or $0.57 per diluted share of common stock, compared to net income of $1.5 million, or $0.18 per diluted share of common stock for the same period in 2011. Third quarter EBITDA was a negative $3.7 million, compared to the year-ago positive EBITDA of $6.6 million.
Total net sales for the third quarter of 2012 were $70.3 million, a 26 percent decrease from total net sales of $94.7 million for the third quarter of 2011. The average sales price per short ton of DAP during the third quarter of 2012 was $496, a 14 percent decrease from the prior-year period average sales price of $578. During the third quarter, the company sold 140,258 tons of DAP, with 31,335 tons moving into export markets and 108,923 tons moving into domestic markets. This compares with 162,761 tons of DAP sold in the third quarter of 2011.
The company had an operating loss of $7.6 million for the third quarter of 2012, compared to operating income of $2.7 million for the prior-year period.
As of Sept. 30, 2012, the company had a cash balance of approximately $2.9 million and borrowings under our credit agreement of $14.4 million. During the third quarter, the company expended $2.8 million on capital expenditures.
On Nov. 30, 2012, the company and OCP S.A. agreed to extend the term of their Agreement for the Purchase and Sale of Phosphate Rock dated August 27, 2009, through June 30, 2013. The agreement was scheduled to expire on Dec. 31, 2012.