UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

          (Mark One)

[X] Quarterly Report Pursuant to Section 13 or 15(d)

Of the Securities Exchange Act of 1934

For the Quarter Ended September 30, 2003

OR

[ ] Transition Report Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Commission File Number 001-12217

 

MISSISSIPPI CHEMICAL CORPORATION

 

Organized in the State of Mississippi

Tax Identification No. 64-0292638

P. O. Box 388, Yazoo City, Mississippi 39194

Telephone No. 662+746-4131

               Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes [x]    No [ ]

               Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).  Yes [  ]   No [X]

               The number of shares outstanding of each of the issuer's classes of common stock, as of October 31, 2003.

Class
Number of Shares
Common Stock, $0.01 par value
24,274,826
MISSISSIPPI CHEMICAL CORPORATION

AND SUBSIDIARIES

INDEX

 
   
Page   
Number
PART I. 
FINANCIAL INFORMATION:
  
Item 1.
Financial Statements       
Consolidated Statements of Operations
3  
     Three months ended September 30, 2003 and 2002        
Consolidated Balance Sheets
4 - 5  
     September 30, 2003 and June 30, 2003       
Consolidated Statements of Shareholders' Equity
6  
     Fiscal Year ended June 30, 2003 and   
     Three months ended September 30, 2003       
Consolidated Statements of Cash Flows
7  
     Three months ended September 30, 2003 and 2002       
Notes to Consolidated Financial Statements
8 - 26     
Item 2.
Management's Discussion and Analysis of Results    
of Operations and Financial Condition
27 - 39     
Item 3.
Quantitative and Qualitative Disclosure About    
Market Risk
40     
Item 4.
Controls and Procedures
40    
PART II.
OTHER INFORMATION:      
Item 3.
Defaults Under Senior Securities
41     
Item 6.
Exhibits and Reports on Form 8-K
41     
Signatures 
41     
Certifications 
42 - 43
 
**PART I.**FINANCIAL INFORMATION
**ITEM 1.**FINANCIAL STATEMENTS.
 

MISSISSIPPI CHEMICAL CORPORATION

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 
  
Three months ended   
September 30,    
2003
2002 
                                 (In thousands, except per share data)
Revenues:     
     Net sales   
$  99,034 
$  97,526 
     Other   
     1,155 
        -         
100,189 
97,526 
Operating expenses:     
     Cost of products sold   
100,956 
95,883 
     Selling, general and administrative   
6,869 
7,360 
     Other   
    10,844 
     5,345     
  118,669 
 108,588       
Operating loss   
(18,480)
(11,062)      
Other (expense) income:     
     Interest, net   
(5,345)
(6,573)
     Other   
        654 
        536       
Loss before income taxes and reorganization     
   expense   
(23,171)
(17,099)      
Reorganization expense (see Note 5)   
   36,292 
       -            
Loss before income taxes   
(59,463)
(17,099)      
Income tax (benefit) expense   
  (20,049)
     6,406       
Net loss   
$(39,414)
$(23,505)
Loss per share - basic and diluted      
     (see Note 6)   
$    (1.55)
$    (0.90)      
 

The accompanying notes are an integral part of these consolidated financial statements.

 

MISSISSIPPI CHEMICAL CORPORATION

AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)

ASSETS
  
September 30, 
June 30,  
2003 
2003  
(In thousands, except per share data)
Current assets:    
   Cash and cash equivalents 
$  10,769  
$      6,102 
   Accounts receivable, net 
35,868  
56,375      
   Inventories:    
      Finished products 
20,388  
29,121 
      Raw materials and supplies 
6,502  
6,415 
      Replacement parts 
   30,568  
     30,750 
             Total inventories 
57,458  
66,286      
   Prepaid expenses and other current assets 
11,792  
5,039 
   Deferred income taxes 
     3,151  
       3,112      
                       Total current assets 
119,038  
136,914      
Investments in affiliates 
112,035  
111,509      
Other assets 
8,218  
10,305      
Assets held for sale (see Note 5) 
35,299  
-           
Property, plant and equipment, at cost 
541,057  
695,919 
  less accumulated depreciation, depletion and    
  amortization 
 (325,792) 
 (406,557)
             Property, plant and equipment, net 
   215,265  
  289,362        
$ 489,855  
$ 548,090      
 

 

The accompanying notes are an integral part of these consolidated financial statements.

MISSISSIPPI CHEMICAL CORPORATION

AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Continued)

LIABILITIES AND SHAREHOLDERS' EQUITY

 
  
September 30, 
June 30,  
2003 
2003  
(In thousands, except per share data)     
Current liabilities:    
   Long-term debt due within one year 
$158,424  
$158,423 
   Accounts payable 
17,994  
15,736 
   Accrued liabilities 
      6,900  
      4,633 
          Total current liabilities 
183,318  
178,792      
Other long-term liabilities and deferred credits 
36,157  
36,872      
Deferred income taxes 
 6,074  
26,518      
Liabilities subject to compromise 
247,143  
249,132      
Shareholders' equity:    
   Common stock ($.01 par, authorized 100,000    
      shares; issued 27,981) 
280  
280 
   Additional paid-in capital 
306,063  
306,063 
   Accumulated deficit 
(248,461) 
(209,047)
   Accumulated other comprehensive loss, net 
(12,245) 
(12,046)
   Treasury stock, at cost (3,150 and 1,769 shares) 
  (28,474) 
  (28,474)
          Total shareholders' equity 
    17,163  
    56,776        
$489,855  
$548,090 
 

 

The accompanying notes are an integral part of these consolidated financial statements.

MISSISSIPPI CHEMICAL CORPORATION

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

FOR THE YEAR ENDED JUNE 30, 2003

AND THE THREE MONTHS ENDED SEPTEMBER 30, 2003

(Unaudited)

 
    Accumulated    Additional Other   CommonPaid-InAccumulatedComprehensiveTreasury  
Stock
Capital
Deficit
Income (Loss)
Stock
Total  
(In thousands)         
Balances, July 1, 2002
$     280
$  305,901
$(102,577)
$     4,983 
$(29,111)
$ 179,476 
  Comprehensive loss:      
     Net loss
-    
-      
(105,853)
-       
-       
(105,853)
     Net change in      
                unrealized loss on      
        hedges, net of tax      
               benefit of $2,910
       -    
        -      
      -       
      (4,853)
      -       
(4,853)
     Deferred pension       
        liability, net of tax      
        benefit of $6,557
       -    
        -      
          -       
    (12,176)
       -       
   (12,176)       
          Comprehensive loss
-    
-      
(105,853)
(17,029)
-       
(122,882)       
     Stock-based       
       compensation
-    
162
-       
-       
-      
162 
     Treasury stock, net
       -    
        -      
       (617)
           -       
         637 
           20        
Balances, June 30, 2003
280
306,063
(209,047)
(12,046)
(28,474)
56,776 ********