Replies to post #162 on Findev Inc (TNSGF)

[dealorfx]

Im gonna sneak this here((PHOS)) so I dont lose track of this one

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Phosphate Holdings, Inc. Reports Third Quarter 2010 Financial Results

MADISON, Miss., Nov 09, 2010 (BUSINESS WIRE) -- Phosphate Holdings, Inc. (PHOS 9.50, +1.10, +13.10%) , today reported a third quarter 2010 profit of $2.5 million, or $0.30 per diluted share of common stock, compared to earnings of $0.7 million, or $0.09 per diluted share of common stock for the same period in 2009.

Total net sales for the third quarter of 2010 were $70.4 million, a 67 percent increase from total net sales of $42.1 million for the third quarter of 2009. The average sales price per short ton of DAP during the third quarter of 2010 was $455, a 70 percent increase from the prior-year period average sales price of $267. During the third quarter, the Company sold 152,500 tons of DAP, all into the domestic market. The Company recorded operating income of $3.9 million for the third quarter of 2010, compared to operating income of $0.9 million for the prior-year period. Earnings before interest, taxes, depreciation and amortization (EBITDA) for the third quarter of 2010 was $7.3 million, compared to EBITDA of $3.8 million for the third quarter of 2009. In the third quarter of 2010 and 2009, EBITDA was favorably impacted by litigation settlements, net of related costs, of $0.8 million and $3.0 million, respectively.

During its third fiscal quarter of 2010, production problems impaired the Company's ability to fully participate in a rapidly improving phosphate market. A waste heat boiler in one of the Company's sulfuric acid plants, which failed during June 2010, was repaired by the end of the second quarter; however, collateral damage to other parts of the plant caused by the boiler failure could not be addressed until the scheduled maintenance turnaround currently underway. For the third quarter, the Company's sulfuric acid production was approximately 187,000 tons, or 77 percent of originally planned levels. Reduced sulfuric acid production had a corresponding unfavorable impact on DAP production, which was approximately 156,000 short tons.

From a market perspective, the third quarter of 2010 saw significant upward movement in DAP prices. DAP prices began the quarter at $408 per short ton, NOLA, and $458 per metric ton, FOB, U.S. Gulf. At quarter's end, DAP prices were $550 per short ton, NOLA, and $566 per metric ton, FOB, U.S. Gulf. Sulfur prices in the quarter were posted at $95 per long ton, CFR, Tampa. Ammonia prices began the quarter at $355 per metric ton, CFR, Tampa, and closed the quarter at $465 per metric ton, CFR, Tampa.

Commenting on third quarter results, Robert E. Jones, Chief Executive Officer, said, "We are pleased to report positive third quarter results despite the significant carry-over impact of operational issues, which first arose during our second fiscal quarter. In the face of steadily deteriorating instantaneous production rates, our operating and maintenance personnel at Pascagoula did an admirable job of keeping our sulfuric acid plants online. We also did a good job of controlling overall spending for the quarter. As a result of these efforts and improving market fundamentals, we were able to bounce back from a very difficult second fiscal quarter of 2010. Our third quarter EBITDA of $7.3 million represents an increase of nearly $12 million over our second quarter 2010 EBITDA level of negative $4.6 million.

"On November 1, 2010, we commenced a major maintenance turnaround during which we plan to address all known issues constraining sulfuric acid, phosphoric acid and DAP production. During the course of the turnaround, work will be performed on both sulfuric acid plants as well as on the phosphoric acid and DAP plants. The downtime associated with these maintenance activities will adversely impact fourth quarter operations. For the quarter, we are projecting DAP production of approximately 140,000 to 150,000 tons. While no assurance can be given, we currently expect to emerge from the November turnaround at materially improved operating rates."

Shifting to the near-to-intermediate-term industry outlook, Jones added, "The balance of 2010 and the first half of 2011 look promising. Since mid-summer, grain and other crop prices have increased substantially, driven by strong demand and lower expectations for the 2010 global harvest. This has created favorable expectations for crop economics, planted acreage and fertilizer demand. During the fourth quarter to date, DAP prices have remained firm domestically, while international prices have strengthened. Given the current tight phosphate supply/demand balance in the U.S., the outlook for the 2011 spring planting season is positive."