CHS Inc. 8% Cumulative Redeemable Prefe (CHSCP, Financial) filed Quarterly Report for the period ended 2010-11-30.
Chs Inc. 8% Cumulative Redeemable Prefe has a market cap of $315.2 million; its shares were traded at around $28.72 . The dividend yield of Chs Inc. 8% Cumulative Redeemable Prefe stocks is 7%.
Our Ag Business segment revenues, after elimination of intersegment revenues, of $5.5 billion, increased $1.8 billion (48%) during the three months ended November 30, 2010 compared to the three months ended November 30, 2009. Grain revenues in our Ag Business segment totaled $4.5 billion and $3.1 billion during the three months ended November 30, 2010 and 2009, respectively. Of the grain revenues increase of $1.4 billion (46%), $1.0 billion is due to increased average grain selling prices, and $383.5 million is due to a 13% net increase in volumes, during the three months ended November 30, 2010 compared to the same period last fiscal year. The average sales price of all grain and oilseed commodities sold reflected an increase of $1.84 per bushel (30%) over the same three-month period in fiscal 2010. The average month-end market price per bushel of spring wheat, soybeans and corn increased approximately $2.27, $2.03 and $1.65, respectively, when compared to the three months ended November 30, 2009. Soybeans, wheat and corn all had increased volumes compared to the three months ended November 30, 2009.
Interest, net. Net interest of $15.0 million for the three months ended November 30, 2010 decreased $1.2 million (7%) compared to the same period in fiscal 2010. Interest expense for the three months ended November 30, 2010 and 2009 was $18.9 million and $18.3 million, respectively. The increase in interest expense of $0.6 million (3%) primarily relates to increased short-term borrowings to meet increased working capital needs from higher commodity prices during the three months ended November 30, 2010 compared to the same period in the previous year. The average level of short-term borrowings increased $550.8 million (221%), mostly due to increased working capital needs resulting from higher commodity prices and was partially offset with reduced average long-term borrowings during the three months ended November 30, 2010 compared to the same period in fiscal 2010. For the three months ended November 30, 2010 and 2009, we capitalized interest of $1.4 million and $1.5 million, respectively, primarily related to construction projects at both refineries in our Energy segment. Interest income was $2.5 million and $0.5 million for the three months ended November 30, 2010 and 2009, respectively. The net increase in interest income of $2.0 million was mostly international within our Ag Business segment.
Our operating activities used net cash of $376.4 million during the three months ended November 30, 2010. Net income including noncontrolling interests of $206.3 million and net non-cash expenses and cash distributions from equity investments of $58.4 million were exceeded by an increase in net operating assets and liabilities of $641.1 million. The primary components of adjustments to reconcile net income to net cash used in operating activities included depreciation and amortization, and amortization of deferred major repair costs, of $57.3 million and deferred taxes of $4.1 million, partially offset by income from equity investments, net of redemptions of those investments, of $1.8 million. The increase in net operating assets and liabilities was caused primarily by an increase in commodity prices in addition to inventory quantities reflected in increased inventories, hedging deposits (included in other current assets) and receivables, partially offset by an increase in accounts payable and customer advance payments on November 30, 2010, when compared to August 31, 2010. On November 30, 2010, the per bushel market prices of our three primary grain commodities increased as follows: corn $1.06 (25%), soybeans $2.35 (23%) and spring wheat $0.44 (6%) when compared to market prices on August 31, 2010. In general, crude oil market prices increased $12 (17%) per barrel on November 30, 2010 compared to August 31, 2010. On November 30, 2010, fertilizer commodity prices affecting our wholesale crop nutrients and country operations retail businesses generally increased between 20% and 29%, depending on the specific products, compared to prices on August 31, 2010. An increase in grain inventory quantities in our Ag Business segment of 39.1 million bushels (26%) also contributed to the increase in net operating assets and liabilities when comparing inventories at November 30, 2010 to August 31, 2010.
Our operating activities used net cash of $29.7 million during the three months ended November 30, 2009. Net income including noncontrolling interests of $122.5 million and net non-cash expenses and cash distributions from equity investments of $65.0 million were exceeded by an increase in net operating assets and liabilities of $217.2 million. The primary components of adjustments to reconcile net income to net cash used in operating activities included depreciation and amortization, and amortization of deferred major repair costs, of $54.6 million and deferred taxes of $19.0 million, partially offset by income from equity investments, net of redemptions from those investments, of $6.9 million. The increase in net operating assets and liabilities was caused primarily by an increase in commodity prices reflected in increased receivables and inventories along with a decrease in customer credit balances, partially offset by increases in accounts payable and accrued expenses as well as customer advance payments on November 30, 2009, when compared to August 31, 2009. On November 30, 2009, the per bushel market prices of two of our three primary grain commodities, corn and spring wheat, increased by $0.77 (23%) and $0.33 (6%), respectively, while soybeans had a slight decrease of $0.40 (4%), when compared to the prices on August 31, 2009. In general, crude oil market prices
We finance our working capital needs through short-term lines of credit with a syndication of domestic and international banks. On November 30, 2010, we had two committed lines of credit. One of these lines of credit is a $900.0 million committed five-year revolving facility that we entered into in June 2010, which expires in June 2015. On November 24, 2010, we terminated our $700.0 million revolving facility that had a May 2011 expiration date and entered into a new $1.3 billion committed 364-day revolving facility that expires in November 2011. On November 30, 2009, we had previous revolving facilities now terminated or expired, with a total committed amount of $1.6 billion. In addition to our revolving lines of credit, we have a committed revolving credit facility dedicated to NCRA, with a syndication of banks in the amount of $15.0 million. In December 2009, the line of credit dedicated to NCRA was renewed for an additional year, with a new $15.0 million facility currently being negotiated under a 60-day extension. Our wholly-owned subsidiaries, CHS Europe S.A. and CHS do Brasil Ltda., have uncommitted lines of credit which are collateralized by $37.7 million of inventories and receivables at November 30, 2010. On November 30, 2010, August 31, 2010 and November 30, 2009, we had total short-term indebtedness outstanding on these various facilities and other miscellaneous short-term notes payable totaling $440.1 million, $29.8 million and $18.6 million, respectively.
Read the The complete Report
Chs Inc. 8% Cumulative Redeemable Prefe has a market cap of $315.2 million; its shares were traded at around $28.72 . The dividend yield of Chs Inc. 8% Cumulative Redeemable Prefe stocks is 7%.
Highlight of Business Operations:
Our Energy segment revenues, after elimination of intersegment revenues, of $2.3 billion increased by $120.6 million (6%) during the three months ended November 30, 2010 compared to the three months ended November 30, 2009. During the three months ended November 30, 2010 and 2009, our Energy segment recorded revenues from our Ag Business segment of $88.8 million and $81.2 million, respectively. The net increase in revenues of $120.6 million is comprised of a net increase of $333.0 million related to higher prices on refined fuels, renewable fuels marketing and propane products, partially offset by $212.4 million related to a net decrease in sales volume. Refined fuels revenues increased $108.2 million (7%), of which $256.1 million was related to a net average selling price increase, partially offset by $147.9 million, which was attributable to decreased volumes, compared to the same period in the previous year. The sales price of refined fuels increased $0.36 per gallon (18%), while volumes decreased 9%. The volume decrease was mainly from the reduced volumes to the minority owners of NCRA due to their required maintenance, in addition to the impact on the global economy with less transport diesel usage, when comparing the three months ended November 30, 2010 with the same period a year ago. Propane revenues decreased $79.3 million (32%), of which $101.5 million was due to a decrease in volume, partially offset by $22.2 million related to an increase in the net average selling price, when compared to the same period in the previous year. The average selling price of propane increased $0.17 per gallon (15%), while sales volume decreased 41% in comparison to the same period of the prior year. The decrease in propane volumes primarily reflects decreased demand primarily from a greatly reduced crop drying season as compared to the fall of 2009. Renewable fuels marketing revenues increased $86.2 million (32%), mostly from an increase in the average selling price of $0.36 per gallon (18%) coupled with a 12% increase in volumes, when compared with the same three-month period in the previous year.Our Ag Business segment revenues, after elimination of intersegment revenues, of $5.5 billion, increased $1.8 billion (48%) during the three months ended November 30, 2010 compared to the three months ended November 30, 2009. Grain revenues in our Ag Business segment totaled $4.5 billion and $3.1 billion during the three months ended November 30, 2010 and 2009, respectively. Of the grain revenues increase of $1.4 billion (46%), $1.0 billion is due to increased average grain selling prices, and $383.5 million is due to a 13% net increase in volumes, during the three months ended November 30, 2010 compared to the same period last fiscal year. The average sales price of all grain and oilseed commodities sold reflected an increase of $1.84 per bushel (30%) over the same three-month period in fiscal 2010. The average month-end market price per bushel of spring wheat, soybeans and corn increased approximately $2.27, $2.03 and $1.65, respectively, when compared to the three months ended November 30, 2009. Soybeans, wheat and corn all had increased volumes compared to the three months ended November 30, 2009.
Interest, net. Net interest of $15.0 million for the three months ended November 30, 2010 decreased $1.2 million (7%) compared to the same period in fiscal 2010. Interest expense for the three months ended November 30, 2010 and 2009 was $18.9 million and $18.3 million, respectively. The increase in interest expense of $0.6 million (3%) primarily relates to increased short-term borrowings to meet increased working capital needs from higher commodity prices during the three months ended November 30, 2010 compared to the same period in the previous year. The average level of short-term borrowings increased $550.8 million (221%), mostly due to increased working capital needs resulting from higher commodity prices and was partially offset with reduced average long-term borrowings during the three months ended November 30, 2010 compared to the same period in fiscal 2010. For the three months ended November 30, 2010 and 2009, we capitalized interest of $1.4 million and $1.5 million, respectively, primarily related to construction projects at both refineries in our Energy segment. Interest income was $2.5 million and $0.5 million for the three months ended November 30, 2010 and 2009, respectively. The net increase in interest income of $2.0 million was mostly international within our Ag Business segment.
Our operating activities used net cash of $376.4 million during the three months ended November 30, 2010. Net income including noncontrolling interests of $206.3 million and net non-cash expenses and cash distributions from equity investments of $58.4 million were exceeded by an increase in net operating assets and liabilities of $641.1 million. The primary components of adjustments to reconcile net income to net cash used in operating activities included depreciation and amortization, and amortization of deferred major repair costs, of $57.3 million and deferred taxes of $4.1 million, partially offset by income from equity investments, net of redemptions of those investments, of $1.8 million. The increase in net operating assets and liabilities was caused primarily by an increase in commodity prices in addition to inventory quantities reflected in increased inventories, hedging deposits (included in other current assets) and receivables, partially offset by an increase in accounts payable and customer advance payments on November 30, 2010, when compared to August 31, 2010. On November 30, 2010, the per bushel market prices of our three primary grain commodities increased as follows: corn $1.06 (25%), soybeans $2.35 (23%) and spring wheat $0.44 (6%) when compared to market prices on August 31, 2010. In general, crude oil market prices increased $12 (17%) per barrel on November 30, 2010 compared to August 31, 2010. On November 30, 2010, fertilizer commodity prices affecting our wholesale crop nutrients and country operations retail businesses generally increased between 20% and 29%, depending on the specific products, compared to prices on August 31, 2010. An increase in grain inventory quantities in our Ag Business segment of 39.1 million bushels (26%) also contributed to the increase in net operating assets and liabilities when comparing inventories at November 30, 2010 to August 31, 2010.
Our operating activities used net cash of $29.7 million during the three months ended November 30, 2009. Net income including noncontrolling interests of $122.5 million and net non-cash expenses and cash distributions from equity investments of $65.0 million were exceeded by an increase in net operating assets and liabilities of $217.2 million. The primary components of adjustments to reconcile net income to net cash used in operating activities included depreciation and amortization, and amortization of deferred major repair costs, of $54.6 million and deferred taxes of $19.0 million, partially offset by income from equity investments, net of redemptions from those investments, of $6.9 million. The increase in net operating assets and liabilities was caused primarily by an increase in commodity prices reflected in increased receivables and inventories along with a decrease in customer credit balances, partially offset by increases in accounts payable and accrued expenses as well as customer advance payments on November 30, 2009, when compared to August 31, 2009. On November 30, 2009, the per bushel market prices of two of our three primary grain commodities, corn and spring wheat, increased by $0.77 (23%) and $0.33 (6%), respectively, while soybeans had a slight decrease of $0.40 (4%), when compared to the prices on August 31, 2009. In general, crude oil market prices
We finance our working capital needs through short-term lines of credit with a syndication of domestic and international banks. On November 30, 2010, we had two committed lines of credit. One of these lines of credit is a $900.0 million committed five-year revolving facility that we entered into in June 2010, which expires in June 2015. On November 24, 2010, we terminated our $700.0 million revolving facility that had a May 2011 expiration date and entered into a new $1.3 billion committed 364-day revolving facility that expires in November 2011. On November 30, 2009, we had previous revolving facilities now terminated or expired, with a total committed amount of $1.6 billion. In addition to our revolving lines of credit, we have a committed revolving credit facility dedicated to NCRA, with a syndication of banks in the amount of $15.0 million. In December 2009, the line of credit dedicated to NCRA was renewed for an additional year, with a new $15.0 million facility currently being negotiated under a 60-day extension. Our wholly-owned subsidiaries, CHS Europe S.A. and CHS do Brasil Ltda., have uncommitted lines of credit which are collateralized by $37.7 million of inventories and receivables at November 30, 2010. On November 30, 2010, August 31, 2010 and November 30, 2009, we had total short-term indebtedness outstanding on these various facilities and other miscellaneous short-term notes payable totaling $440.1 million, $29.8 million and $18.6 million, respectively.
Read the The complete Report
