INNOPHOS HOLDINGS, INC. (IPHS, Financial) filed Quarterly Report for the period ended 2010-03-31.
Innophos Holdings, Inc. has a market cap of $602.3 million; its shares were traded at around $28.16 with a P/E ratio of 8.9 and P/S ratio of 0.9. The dividend yield of Innophos Holdings, Inc. stocks is 2.4%.IPHS is in the portfolios of Jim Simons of Renaissance Technologies LLC, Chuck Royce of Royce& Associates.
Gross profit represents net sales less cost of goods sold. Gross profit for the three months ended March 31, 2010 was $36.7 million, a decrease of $33.1 million, or 47.4%, as compared to $69.8 million for the same period in 2009. Gross margin decreased to 21.7% for the three months ended March 31, 2010 versus 36.6% for the same period in 2009. The change in gross profit was primarily due to lower selling prices which had an unfavorable effect of $44.8 million. This was partially offset by favorable sales volume and mix which resulted in a net favorable effect of $11.7 million. Cost of goods sold on a replacement cost basis would have been $8.3 million lower for the first quarter due to U.S. raw material cost resets effective January 1, 2010, but this benefit was delayed until the second quarter due to sale of existing higher cost inventory which was depleted in the first quarter 2010.
Net cash from operating activities was a use of $6.7 million for the three months ended March 31, 2010 as compared to source of $71.8 million for the same period in 2009, a decrease in cash of $78.5 million. The decrease in operating activities cash resulted primarily from unfavorable changes of $58.0 million in working capital and $19.8 million in net income as described earlier.
In the second quarter of 2009 the Company launched an ERP project to upgrade its systems technology and to improve its position as a reliable specialty phosphate supplier. To date the Company has spent approximately $15.3 million on this project, of which approximately $8.7 million was capitalized as of March 31, 2010, and future expenditures on the ERP project are expected to total approximately $8 to $10 million by the end of 2010, with the majority of this spending anticipated as capital expenditures.
Innophos currently estimates that full exploration costs to a proven reserves standard for the Santo Domingo deposit could require expenditures of $10 to $15 million over a three year period, inclusive of expenditures to date. This estimate includes mineral rights payments, taxes, mineral resource measurement, beneficiation process design and completion of feasibility studies. Full expenditures would only occur if interim milestone goals were successfully attained. It is estimated that 2010 expenditures will be approximately $1 to $2 million with efforts primarily focused on the Santo Domingo deposit. Innophos intends to seek one or more partners for these efforts, but anticipates no difficulties in completing the exploration phase without a partnership.
Net cash from financing activities for the three months ended March 31, 2010 was a use of $3.0 million compared to $57.2 million for the same period in 2009, an increase in cash of $54.2 million. This is mainly due to a $54.0 million Term Loan principal payment in 2009.
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Innophos Holdings, Inc. has a market cap of $602.3 million; its shares were traded at around $28.16 with a P/E ratio of 8.9 and P/S ratio of 0.9. The dividend yield of Innophos Holdings, Inc. stocks is 2.4%.IPHS is in the portfolios of Jim Simons of Renaissance Technologies LLC, Chuck Royce of Royce& Associates.
Highlight of Business Operations:
Net sales represent the selling price of the products, net of any customer-related rebates, plus freight and any other items invoiced to customers. Net sales for the three months ended March 31, 2010 were $169.0 million, a decrease of $21.8 million, or 11.4%, as compared to $190.8 million for the same period in 2009. Selling price decreases had a negative effect on revenue of 23.5% or $44.8 million which occurred across all product lines and segments. Volume and mix effects upon revenue were positive 12.0% or $23.0 million driven by U.S. and Canada Specialty Salts and Specialty Acids and Purified Phosphoric Acid.Gross profit represents net sales less cost of goods sold. Gross profit for the three months ended March 31, 2010 was $36.7 million, a decrease of $33.1 million, or 47.4%, as compared to $69.8 million for the same period in 2009. Gross margin decreased to 21.7% for the three months ended March 31, 2010 versus 36.6% for the same period in 2009. The change in gross profit was primarily due to lower selling prices which had an unfavorable effect of $44.8 million. This was partially offset by favorable sales volume and mix which resulted in a net favorable effect of $11.7 million. Cost of goods sold on a replacement cost basis would have been $8.3 million lower for the first quarter due to U.S. raw material cost resets effective January 1, 2010, but this benefit was delayed until the second quarter due to sale of existing higher cost inventory which was depleted in the first quarter 2010.
Net cash from operating activities was a use of $6.7 million for the three months ended March 31, 2010 as compared to source of $71.8 million for the same period in 2009, a decrease in cash of $78.5 million. The decrease in operating activities cash resulted primarily from unfavorable changes of $58.0 million in working capital and $19.8 million in net income as described earlier.
In the second quarter of 2009 the Company launched an ERP project to upgrade its systems technology and to improve its position as a reliable specialty phosphate supplier. To date the Company has spent approximately $15.3 million on this project, of which approximately $8.7 million was capitalized as of March 31, 2010, and future expenditures on the ERP project are expected to total approximately $8 to $10 million by the end of 2010, with the majority of this spending anticipated as capital expenditures.
Innophos currently estimates that full exploration costs to a proven reserves standard for the Santo Domingo deposit could require expenditures of $10 to $15 million over a three year period, inclusive of expenditures to date. This estimate includes mineral rights payments, taxes, mineral resource measurement, beneficiation process design and completion of feasibility studies. Full expenditures would only occur if interim milestone goals were successfully attained. It is estimated that 2010 expenditures will be approximately $1 to $2 million with efforts primarily focused on the Santo Domingo deposit. Innophos intends to seek one or more partners for these efforts, but anticipates no difficulties in completing the exploration phase without a partnership.
Net cash from financing activities for the three months ended March 31, 2010 was a use of $3.0 million compared to $57.2 million for the same period in 2009, an increase in cash of $54.2 million. This is mainly due to a $54.0 million Term Loan principal payment in 2009.
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